Sale of Netto Foodstores Limited

May 27, 2010 15:26
Dansk Supermarked A/S has entered into an agreement to sell its fully owned subsidiary Netto Foodstores Limited to Asda Stores Limited at a total consideration of GBP 778 million on a cash and debt free basis, reports with reference to Maersk.
"Netto UK has been profitable and was appointed ‘Discounter of the Year' in 2009 in the United Kingdom. We have substantial opportunities for growth in Scandinavia and Northern Europe and believe that the time has come to focus our efforts on the development of our business in these countries. As a major league player Asda is an ideal purchaser of our UK business," says Erling Jensen, CEO of Dansk Supermarked A/S.
"Dansk Supermarked will continue to invest in Netto and will continue to have a strong focus on growing the business in line with the strategy as set out by the board and supported by our owners who see retail as a well-performing and core business area" says Erling Jensen.
The transaction remains subject to regulatory approval from the UK competition authorities and is expected to be completed during September 2010.
The transaction will generate an accounting gain for Dansk Supermarked A/S in the order of DKK 4.6 billion. The total consideration and the accounting gain may be reduced dependent on the extent of regulatory remedies required in order to obtain approval from the UK competition authorities.
Netto Foodstores Limited owns Dansk Supermarked's UK retail business, which consists of 193 Netto stores operating within the market of limited assortment discounters. Before the transaction Dansk Supermarked, which was established in 1960 by Mr. Herman Salling, owned more than 1,300 brand name outlets with more than 43,000 employees. After the transaction, Dansk Supermarked owns more than 1,100 outlets with approximately 40,000 employees. A.P. Møller - Mærsk A/S has been co-owner of Dansk Supermarked A/S since 1964 and has an ownership interest in Dansk Supermarked A/S of approximately 68%.
For further information, please contact:
Erling Jensen, CEO of Dansk Supermarked A/S: +45 8930 3203.
A.P. Møller - Mærsk A/S, Investor Relations: +45 3363 3106.
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