Note 12
2005 1
-
The result on divestments of discontinued operations was as follows:
RESULT ON DIVESTMENTS OF DISCONTINUED OPERATIONS
2004
Cash received
1,058
978
Cash in escrow (regarding Disco)
(198)
233
Receivable (regarding BI-LO/Bruno's)
53
Total proceeds
913
1,211
Net Assets
Property, plant and equipment and intangible assets
871
1,292
Financial assets
136
77
Current assets
638
680
Total assets
1,645
2,049
Non-current liabilities
427
211
Current liabilities
480
858
Total liabilities
907
1,069
Net assets divested
738
980
Cumulative translation differences
(24)
(1)
Income taxes
21
8
Result on divestments of discontinued operations
172
238
No amounts with respect to non-current assets held for sale were recognized directly in group equity in 2005 (2004: EUR 18).
The 2005 result on divestments of discontinued operations includes EUR 13 of expenses with respect to discontinued
operations divested in previous periods. These expenses mainly relate to claims received under warranties and guarantees
issued upon the divestments in 2004 of Disco, Bomprego/Hipercard and Ahold's operations in Spain.
2005 Divestments of discontinued operations
BI-LO/Bruno's Arena - BI-LO/Bruno's
In January 2005, Ahold completed the sale of BI-LO and Bruno's to an affiliate of the Lone Star Funds. Ahold received USD
574 (EUR 440) in cash proceeds in 2005, which includes price adjustments. BI-LO and Bruno's retained all of their debt
obligations and other liabilities including finance lease liabilities. Within 18 months of closing, Ahold is entitled to receive the
balance of the purchase price in stages, depending upon BI-LO and Bruno's achieving certain targets relating to dispositions of
inventory, real estate and other assets. Estimated proceeds under this arrangement are approximately USD 100 (EUR 84). In
order to secure the payment of this variable balance of the purchase price, a letter of credit for USD 100 was placed in escrow
at closing of the transaction. Ahold received USD 69 (EUR 56) of the variable balance of the purchase price until March 2006.
The transaction resulted in a loss on divestment of USD 4 (EUR 4).
Other retail - G. Barbosa
In April 2005, Ahold completed the sale of G. Barbosa Comercial Ltda. ("G. Barbosa") to an affiliate of ACON Investments, a
U.S.-based investment firm. The divestment of G. Barbosa completed Ahold's divestiture program in Brazil. The transaction
resulted in a loss on divestment of USD 4 (EUR 4).
Deli XL
In September 2005, Ahold completed the sale of Deli XL (active in the foodservice wholesale industry in the Benelux)
to Bidvest Holding B.V., a subsidiary of the South Africa based Bidvest Group. The value of the transaction amounts to
approximately EUR 140, consisting of a cash consideration, debt repaid to Ahold as well as assumed debt. The transaction
resulted in a gain on divestment of EUR 58.
AHOLD ANNUAL REPORT 2005 129
