Largest Belgian company lists American Depositary Receipts
NEW YORK, N.Y., April 26, 2001 - Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group (Euronext Brussels: DELB, NYSE: DEG), a 134-year old international food retailer, rang the opening bell at the New York Stock Exchange today as the company launched its American Depositary Receipt (ADR) program under the symbol "DEG". With this ADR program Delhaize Group will be the only Belgian company currently listed on the New York Stock Exchange.
95% of Class A Delhaize America shareholders and more than 93% of Class B shareholders casting ballots yesterday approved a share exchange with Delhaize Group. Delhaize Group exchanged all outstanding shares that it did not already own of Salisbury, N.C.-based Delhaize America for Delhaize Group ordinary shares or ADRs. Before the share exchange, Delhaize Group owned approximately 37% of Delhaize America's Class A common stock and approximately 56% of Delhaize America's Class B common stock. Delhaize Group has been Delhaize America's largest shareholder for more than a quarter-century since it acquired in 1976 a controlling interest in Food Town Stores (later renamed Food Lion and then Delhaize America). Until April 25, 2001, shares of Delhaize America common stock were listed on the New York Stock Exchange.
Delhaize America is the fifth largest U.S. supermarket operator. At the end of 2000, Delhaize America operated 1,420 supermarkets under the leading banners Food Lion, Hannaford and Kash n' Karry in 16 states in the eastern United States. In 2000, Delhaize America's sales totaled USD 12.7 billion, representing 75.6 percent of Delhaize Group's revenue, while 16.4 percent of Delhaize Group's sales came from Belgian operations, and 8.0 percent from other regions globally. Delhaize America currently employs more than 120,000 associates.
"The NYSE listing fits perfectly in our strategy of positioning Delhaize Group as an attractive investment by providing an easier way for investors to participate in our future development", said Pierre-Olivier Beckers. "It will allow to better align Delhaize Group's shareholder base with its significant U.S. activities, while also enabling the former Delhaize America shareholders to trade their Delhaize Group stock on a U.S. stock exchange. The NYSE listing is the next step in the systematic transformation of the company, after reinforcing the U.S. presence through the acquisition of Hannaford Bros., increasing our strong profitability, accelerating the international expansion into high potential markets, and streamlining the organizational and capital structure."
In the past 18 months, Delhaize Group and its global subsidiaries have acquired a controlling stake or full ownership of the following: Hannaford Bros. in the United States, Food Lion in Thailand, Mega Image in Romania, Trofo in Greece, as well as home-delivery service Caddy-Home in Belgium. Delhaize Group now operates in ten countries on three continents.
"The exchange is privileged to welcome Delhaize Group, truly one of the great names in the international food retail industry, to our family of listed companies", said Dick Grasso, New York Stock Exchange Chairman and CEO. "In choosing to list on the NYSE, Delhaize Group will provide its international shareholders the efficiency, depth and technology of the world's leading equities market. We have been very proud of our long-standing relationship with Delhaize America and look forward to growing our partnership with Delhaize Group in the years ahead."
ADRs are a popular method of investing in non-U.S. companies for investors wanting to diversify their portfolios internationally. One Delhaize Group ADR represents one Delhaize Group ordinary share, which is traded on Euronext Brussels under the symbol "DELB". The Bank of New York acts as the depositary bank for the level III ADR program, and Walter N. Frank & Company is the company's specialist.
Delhaize Group is part of the BEL20 index, the leading index of Euronext Brussels encompassing the 20 Belgian companies with the highest market capitalization. The company is also a component of Euronext 100, the most significant index of Euronext (the merged stock exchanges of Paris, Amsterdam, and Brussels), and the pan-European Dow Jones Stoxx Euro index. Information on Delhaize Group shares is available on Bloomberg under the symbol DEHT BB and on Reuters under the symbol DELBt.BR.
About Delhaize Group
Delhaize Group is a food retailer headquartered in Belgium and listed on Euronext Brussels and the New York Stock Exchange. At the end of 2000, Delhaize Group's sales network consisted of 2,310 stores in ten countries on three continents. In 2000, Delhaize Group achieved sales of EUR 18.2 billion (USD 16.8 billion) and net earnings of EUR 160.7 million (USD 148.1 million). Delhaize Group employs approximately 152,000 persons.
For more information, visit the Delhaize Group web site at www.delhaizegroup.com. The press release is available in English, French and Dutch. It is accompanied by a photo of the listing, which is available at: http://www.delhaizegroup.com/public/en/new/index.asp. Questions can be e-mailed to investor@delhaizegroup.com.
This press release is not an offer or the solicitation of an offer to acquire any securities of Delhaize Group and no such offer or solicitation will be made except in compliance with applicable securities law.
Certain statements contained in the press release and related statements by management may be deemed to be forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, including those described in Delhaize Group's filings with the Securities and Exchange Commission and specifically including the risk that the trading market for Delhaize Group's ADRs will not be as active as hoped or reach prices that are desired. Delhaize Group undertakes no obligation to update this forward-looking information except as required by law.
Contacts
Guy Elewaut: GSM +32 (0)477 50 07 96 + 32 (0)2 412 29 48 (from May 3, 2001)
Geoffroy d'Oultremont: GSM +32 (0)478 88 32 96 + 32 (0)2 412 83 21 (from May 3, 2001)
Tawn Earnest: +1 (704) 633-8250, ext. 2185
Amy Shue: +1 (704) 633-8250, ext. 2529