Notes to the consolidated financial statements
5 Assets held for sale and discontinued operations continued
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31 www.ahold.com/reports2008
Financial statements
AHOLD ANNUAL REPORT 2008 60
As part of the transaction, Ahold acquired preference shares for EUR 50 million, carrying a fixed cumulative dividend of 6.5 percent
per year, representing a 20 percent indirect interest in Schuitema. The preference shares are presented in the consolidated balance
sheet as a loan receivable within other non-current financial assets. Ahold, as holder of these preference shares, has to give its prior
approval in case Schuitema acquires, is acquired by or merges with a Dutch food retailer with a substantial number of food retail
stores in the Netherlands. Ahold cannot exercise this right if Schuitema offers it a number of stores, selected by Schuitema, based
upon certain agreed objective principles. The purchase price for stores offered to Ahold is to be established on an arm's-length basis
and to be agreed upon at the moment Ahold purchases such stores. This arrangement lapses on April 22, 2011 or, if sooner, once
Ahold has agreed to purchase a maximum number of stores in one or more transactions. Upon termination of this arrangement,
Ahold can sell and Schuitema's majority shareholder can acquire Ahold's preference shares at cost plus accrued dividends. The
intangible asset represented by the rights attached to Ahold's preference shares as described above has not been recognized in
the consolidated balance sheet, because it is uncertain that Ahold will obtain future economic benefits attributable to these rights
and because it is not possible to reliably measure the cost of these rights.
2007 divestments
On December 4, 2006, Ahold announced it had reached an agreement on the divestment of its retail operations in Poland to
Carrefour. The transaction was completed on July 2, 2007 and was valued at EUR 375 million, consisting of cash consideration
and assumed debt.
On May 2, 2007, Ahold announced it had reached an agreement on the sale of U.S. Foodservice to Clayton, Dubilier Rice and
Kohlberg Kravis Roberts for a purchase price of USD 7.1 billion (EUR 5.2 billion). Shareholder approval for the transaction was
obtained at an Extraordinary General Meeting held on June 19, 2007 and the transaction closed on July 3, 2007.
On October 11, 2007, Ahold announced it had reached an agreement on the sale of Tops Markets to Morgan Stanley Private Equity
in a transaction valued at USD 310 million (EUR 219 million). The transaction closed on December 3, 2007.
The adjustments to the result on divestment in 2008 for U.S. Foodservice and Tops were primarily related to income taxes and
for Poland were primarily related to purchase price adjustments.
The following table presents the reconciliation between cash received and result on divestments of discontinued operations:
million
2008
2007
Cash received (net of cash divested of EUR 16 million and EUR 288 million, respectively)
321
5,435
Net assets divested
(173)
(3,441)
Changes in accounts receivable/payable - net
11
(49)
Cumulative exchange rate differences transferred from equity
120
Income taxes
19
(26)
Result on divestments of discontinued operations
178
2,039
