After some weeks of talks and negotiations behind closed doors the CEO of Ahold broke the silence. This morning Ahold and Delhaize announce their intention to combine their businesses through a merger of equals. The press release states:
The merger will create a complementary base of more than 6,500 stores with 375,000 associates, characterized by trusted brands with strong local identities. The combination, Ahold Delhaize, will be able to serve over 50 million1 customers per week in the United States and in Europe.
As a proud and longtime shareholder of Ahold, I was curious about what will happen with my stocks. I read that Delhaize shareholders will receive 4.75 Ahold ordinary shares for each Delhaize ordinary share. Ahold shareholders will own c. 61% of the combined company’s equity and Delhaize shareholders will own c. 39% of the combined company’s equity. Furthermore Ahold will terminate its ongoing share buyback program. And €1 billion will be returned to Ahold shareholders via a capital return and a reverse stock split prior to completion of the transaction.
The completion of the transaction is expected mid 2016.
For my readers, who think Ahold???? Here a fact sheet
And here are some key figures.
With all I read about this merger I, as shareholder, like what I read. With these combined figures I think my dividend will not be in danger.