In June 2015 I told you that Ahold and Delhaize announced their intention to combine their businesses through a merger of equals. he 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 million customers per week in the United States and in Europe.
The completion of this merger was expected in mid 2016. That was more than a year ago. So it is time for an update now.
A lot has happened during this year.
A merger approval was given in Belgium and here in The Netherlands.
And this week the Ahold and Delhaize Group announced that their United States subsidiaries have reached agreements with buyers to divest a total of 86 stores in a limited number of locations in which the companies’ U.S. subsidiaries both operate. These divestments are being made in connection with the United States Federal Trade Commission’s (FTC) pending review of the proposed merger between the two companies. The divested stores are being sold to well established supermarket operators.
And of course in March of 2016, during the Annual General Meeting (AGM) the shareholders approved the proposed merger. So the merger is almost completed.
For me as an Ahold shareowner, it will come with a little bonus. Because €1 billion will be returned to Ahold shareholders via a capital return and a reverse stock split prior to completion of the transaction. And this will be done next week!
Ahold will pay €1.21411 per share to shareholders of record on July 15. This will be done in the form of a super dividend. This super dividend will be paid on July 21, 2016. On this super dividend no taxes will be hold 😉
Furthermore the reverse stock split will be executed on July 18, 2016. The split has a ratio of 17:16. This means that for every 17 old Ahold stocks, you will get 16 new Royal Ahold Delhaize stocks. In this reverse stock split no fraction will be issued. So if you own more stocks than a multiple of 17, the fractions will be paid in cash.
My Vrijheid Fonds consist of 443 shares of Ahold (AH.AS), so my super dividend will be €537.85. This will be paid next Thursday.
Furthermore coming next Monday I will own 416 shares of Royal Ahold-Delhaize. Only 1 share of Ahold will be paid in cash.
I’m happy with this super dividend and of course with the new company. As I wrote back in June 2015, with the combined figures I think my dividend will not be in danger.
For further information on the merger, take a look at the special website of Royal Ahold Delhaize.