Ahold sells local unit to Hero

Ahold sells local unit to Hero

Dow Jones, Amsterdam

Amsterdam-based supermarket operator Koninklijke Ahold N.V. (Ahold) said Tuesday that it has reached agreement for the sale of its Indonesian operation to PT Hero Supermarket for approximately 12 million euro (about US$ 10.90 million), excluding proceeds from the sale of store inventory.

Ahold Indonesia operates the TOPS supermarket chain.

This asset purchase agreement is subject to the approval of Hero's shareholders and is expected to be finalized in the third quarter of 2003. Hero is a prominent food retail group listed on the Jakarta stock exchange with 200 outlets throughout Indonesia.

The transaction involves 22 stores plus one under construction, and two distribution centers. The actual transfer of the stores and both distribution centers will take place following the approval of Hero shareholders.

Staff at Ahold's Indonesian headquarters are not included in the transaction, although Ahold is committed to meeting its obligations to these associates.

The divestment of Ahold's activities in Indonesia is part of the company's strategic plan to restructure its portfolio to focus on high-performing businesses, to concentrate on its mature and most stable markets and to reduce its debt.

Ahold first entered the Indonesian market through a technical service agreement with the PSP group in 1996. That agreement ended in 2002 and Ahold Tops Indonesia became a wholly-owned subsidiary. Unaudited net sales in 2002 amounted to approximately 37 million euro. Ahold employs approximately 1,600 people in Indonesia.