In 2004, the Board of Directors of Delhaize Group SA (“the Board”) approved the purchase of up to EUR 200 million of Delhaize Group SA (“Delhaize Group” or “the Company”) shares or American Depositary Shares from time to time in the open market at management's discretion, in compliance with applicable laws and subject to and within the limits of an outstanding authorization granted to the Board by the shareholders of Delhaize Group, to satisfy exercises under the stock option plans that Delhaize Group offers to its associates. No time limit has been set for these purchases.
The shareholders’ meeting of Delhaize Group has authorized the Board to acquire up to 10% of the outstanding shares of the Company at a minimum share price of EUR 1.00 and a maximum share price not higher than 20% above the highest closing price of the Delhaize Group share on Euronext Brussels during the 20 trading days preceding the acquisition.
In this context, Delhaize Group entered into a share buy-back program with a Belgian credit institution for the purchase of Delhaize Group shares on Euronext Brussels. This credit institution makes its decisions to purchase Delhaize Group shares independently of, and without influence by, Delhaize Group with regard to the timing of the purchases.
Between December 2006 and November 2007, the credit institution purchased 384,575 Delhaize Group shares for an aggregate consideration of EUR 25.8 million under a first buy-back agreement entered into with Delhaize Group in December 2006.
Details of the Transactions under this first agreement
In March 2008, Delhaize Group entered into a second buy-back agreement with the same credit institution for the purchase of up to 500,000 Delhaize Group shares on Euronext Brussels between March 2008 and March 2010, up to a maximum aggregate consideration of EUR 35,000,000.
Delhaize Group also anticipates purchasing own shares from time to time in addition to shares purchased on its behalf under the share buy-back program.