Subsequent events
Investigations
Divestments
Following the announcements on February 24, 2003 that Ahold would restate its earnings for fiscal 2001 and 2000, civil
and criminal investigations were initiated by both U.S. and non-U.S. governmental and regulatory authorities and
numerous civil lawsuits were filed as discussed in Note 30. Ahold has given its full cooperation to all current
investigations. These investigations remain outstanding.
The following investments were sold, or the sale was initiated in fiscal 2003. None of these divestments qualified for
presentation as a discontinued operation in fiscal 2002. These divestitures were made or planned consistent with the
Company's strategy to reduce its debt and increase profitability by disposing some of its non-core businesses or to
withdraw from certain markets that are not expected to contribute to the Company's long-term profitability.
In July 2003, Ahold closed the sale of its 99.6% interest in Santa Isabel S.A. to the Chilean retailer Cencosud S.A. Ahold
and Cencosud S.A. completed the transaction based on a total value, excluding any liabilities, of approximately USD 150
for Ahold's operations in Chile. After adjustment of the value for net working capital and external interest-bearing debt, the
net proceeds of the transaction for Ahold amounted to approximately USD 77. Cencosud S.A. assumed Santa Isabel's
external interest-bearing debt of USD 18. Santa Isabel S.A. operated stores in Chile in the retail trade segment.
The transaction was limited to Ahold's supermarket activities in Chile. Its activities in Peru and Paraguay, previously
conducted through subsidiaries of Santa Isabel S.A., remained with Ahold. As discussed below Ahold subsequently sold its
operations in Paraguay. It expects to sell its operations in Peru.
De Tuinen
In May 2003 Ahold completed the divestment of wholly-owned subsidiary De Tuinen, a chain of natural product stores in
the retail trade segment located throughout the Netherlands. De Tuinen was sold to NBTY's British subsidiary Holland
Barrett Europe Ltd. for approximately EUR 16. The transaction includes all De Tuinen chain stores and their inventory.
The franchise stores will also conduct their business with Holland Barrett.
Jamin
In June 2003, Ahold divested its Dutch candy store chain Jamin Winkelbedrijf B.V, which was included in the retail
trade segment. Through a management buy-out, Jamin's current executive team will continue to run the company as
an independent entity. The transaction includes all five Jamin chain stores and their inventory, stock and debtors.
The franchise stores will also continue to conduct their business with Jamin.
Malaysia
In May 2003, Ahold reached an agreement for the sale of its Malaysian assets, operating under the name of TOPS Retail
(Malaysia) Sdn Bhd, to Dairy Farm Giant Retail Sdn Bhd ("Giant"), a subsidiary of Dairy Farm International Holdings
Limited. The transaction, an asset purchase agreement, was finalized in the third quarter of 2003.
The transaction involves stores and a grocery distribution center, all of which are included in the retail trade segment.
The actual transfer of the stores and distribution center will take place following regulatory approvals in Malaysia and the
satisfaction of other customary conditions.
De Walvis
In August 2003, Ahold announced the divestment of its Dutch restaurant "De Hoop op d'Swarte Walvis" (De Walvis)
located in Zaandam. The Nedstede Group has acquired the restaurant through an asset sale and purchase agreement that
includes inventory and real estate included in the other segment. The agreement was completed on September 8, 2003.
Indonesia
In April 2003, Ahold announced it had reached agreement for the sale of its Indonesian operations under the name of PT
Putra Serasi Pioneerindo to PT Hero Supermarket Tbk for approximately EUR 11, including proceeds from the sale of store
inventory. The transfer of assets took place in stages, which began in June 2003 and was finalized in the third quarter of
2003.
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