Note 12
Financial statements - Notes to the consolidated financial statements
In 2004 a remeasurement to fair value less cost to sell of
EUR 69 was recorded in the BI-LO/Bruno's Arena in the
results from discontinued operations, which affected
operating expenses and income taxes by EUR 45 and
EUR 24, respectively.
The combined carrying amounts of the major classes of
assets and liabilities classified as held for sale that related to
discontinued operations were as follows:
Condensed balance sheet data
December 31, January 1,
2006 2006
Non-current assets
Current assets
310
103 -
Assets related to discontinued operations
413
Non-current liabilities
Current liabilities
2
182 -
Liabilities related to discontinued operations
184 -
Net assets related to discontinued operations
229 -
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 670 (EUR 519) in cash proceeds during 2004, 2005
and 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 to
Bidvest Holding B.V., a subsidiary of the South African-
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.
Other retail - Paiz Ahold
In September 2005, Ahold completed the sale of its
50 percent stake in Paiz Ahold to Wal-Mart Stores Inc. Paiz
Ahold held an interest of 66.7 percent in CARHCO, which
operates food stores in Guatemala, El Salvador, Costa Rica,
Nicaragua and Honduras. The transaction resulted in a gain
on divestment of USD 165 (EUR 135).
2004 Divestments of discontinued operations
Other retail - Bomprego/Hipercard
In March 2004, Ahold completed the sale of its Brazilian
food retailer Bomprego S.A. Supermercados do Nordeste
("Bomprego") to Wal-Mart Stores Inc. Concurrently, Ahold
sold its Brazilian credit card operation Hipercard
Administradora de Cartao de Crédito Ltda ("Hipercard") to
Unibanco S.A. The combined transaction resulted in a gain
on divestments of USD 98 (EUR 79).
Other retail - CRC.Ahold
In March 2004, Ahold sold its stake in CRC.Ahold, operating
in Thailand, to its partner, the Central Group resulting in a
gain on divestments of EUR 6. With this divestment Ahold
completed the divestment of all of its Asian operations.
Other retail - Spain
In December 2004, Ahold completed the sale of its Spanish
retail activities to the Permira Funds resulting in a gain on
divestments of EUR 64.
Other retail - Disco
In November 2004, Ahold partially completed the sale of its
99.94 percent controlling stake in Disco S.A. ("Disco") to
Chilean retailer Cencosud S.A. ("Cencosud") by transferring
the ownership of approximately 85 percent of the
outstanding Disco shares. Ahold intends to transfer the
remaining Disco shares to Cencosud as soon as legally
possible. These shares are subject to certain Uruguayan
court orders processed and executed in Argentina, which
could potentially prohibit their transfer. Pending the transfer
of these shares, Ahold has agreed to exercise its voting rights
with regard to those shares according to Cencosud's
instructions and to pay to Cencosud any dividends received
on such shares.
The transaction resulted in a gain on divestments of
USD 116 (EUR 89). Ahold received the escrowed funds for
the transferred 85 percent of Disco shares on March 23,
2005. The purchase price for the remaining approximately
15 percent of the Disco shares that have not been
transferred remains in escrow until such shares can be
transferred to Cencosud. Ahold has agreed to indemnify
Cencosud for losses incurred if Ahold were to lose legal
ownership of any of those shares.
The transfer of Ahold's entire stake in Disco is subject to
approval by the Argentine antitrust authorities. In the event
that the antitrust authorities do not approve the transfer of
the Disco shares to Cencosud, under the terms of the
contract, Ahold is not under any obligation to repay any
amount to Cencosud. Instead Ahold will hold the Disco
shares for the risk and account of Cencosud and Cencosud
shall take all relevant action to effect that the Disco shares
are transferred to a third party. For more information on the
legal proceedings related to Disco, see Note 34.
84 Ahold Annual Report 2006
