QAF and the Delhaize 'The Lion' group have reached an agreement by which Delhaize will acquire 49% of the Singaporean supermarket chain Shop N Save, subject to approval for certain provisions in the agreement from an extraordinary shareholders meeting of QAF. Under the agreement, Delhaize 'The Lion' will buy existing shares and subscribe to an exclusively reserved capital increase for a total amount of SGD 23.3 million (EUR 11.9 million). QAF keeps 51% of Shop N Save. Shop N Save continues to use its own trade name.
Shop N Save is the third most important food retailer in Singapore, with a fast growing market share already exceeding 10%. In 1997 Shop N Save made a net profit of SGD 1.2 million (EUR 0.61 million). Shop N Save has 22 supermarkets and employs about 800 people. The average size of Shop N Save supermarkets is 12,000 square feet (1,100 square meters selling area).
Shop N Save bases its strategy on offering high quality fresh products and aggressive prices to its clients. This format, supported by the expertise of Delhaize 'The Lion' and QAF, fits perfectly with the strategy of Delhaize 'The Lion' for its further development in Asia.
QAF is a company incorporated in the Republic of Singapore and listed on the Stock Exchange of Singapore. The principal activities of QAF and its subsidiaries consist of the manufacture and distribution of bread, confectionery and bakery products, trading, cold-storage warehousing and the operation of supermarkets. QAF is majority owned by the Salim group, the partner of Delhaize 'The Lion' in their Indonesian joint venture Lion Super Indo.
The Belgian food retail group Delhaize 'The Lion', which is listed on the Brussels Stock Exchange, achieved in 1998 sales of BEF 520.8 billion (EUR 12.9 billion). For the financial year 1997, net profit amounted up to BEF 4.9 billion (EUR 121.5 million). At the end of 1998, the Delhaize 'The Lion' group employed more than 110,000 people and counted 1,904 stores in the USA, Belgium, France, Greece, the Czech and Slovak Republics, Indonesia and Thailand.
Delhaize 'The Lion' started its Asian activities in 1997. Singapore is now its third country of activity in Asia. At the end of 1998 Bel-Thai Supermarket Co.Ltd. (Thailand) operated 5 supermarkets and PT Lion Super Indo (Indonesia) 12 supermarkets. Despite the economic crisis, the result of the Asian activities of Delhaize 'The Lion' was break-even for the year 1998.
For additional information:
Guy Elewaut
Investor and financial press relations manager Delhaize 'The Lion' Group
32.(0)2.412.29.48
Brussels, January 18, 1999