Ahold to buy back two billion euro in shares

Ahold to buy back two billion euro in shares

Dutch retail group Ahold has announced it would purchase its own shares for some two billion euro. The distributor is sitting on a pile of money, after selling Scandinavian group ICA.

Extra purchase thanks to Scandinavian divestment

Earlier this year Ahold sold 60% of its participation in Scandinavian sector colleague ICA to co-owner Hakon Invest for 2.5 billion euro. The sales had been taken into account: in 2012 Ahold had already decided to leave ICA when it could not get complete control of the chain.

 

A number of analysts already expected Ahold to use that money to buy its own shares. A drop of the number of shares in circulation causes future profits to be divided among less titles, causing the other shares to rise in value. At the same time however chances for a major takeover diminish significantly. Some analysts believed Ahold was planning on taking over American retailer Harris Teeter, but that has become unlikely now.

 

Most analysts expected Ahold to reserve 1 to 1.8 billion euro for the purchase. In February of this year Ahold already announced a buyback of its own shares for about 500 million euro spread across about 12 months. In the end the number is even higher: before the end of 2014 Ahold will buy back two billion euro of its own shares. This would mean that the company would be buying about a sixth of its own value.

Questions or comments? Please feel free to contact the editors


Beate Uhse files for insolvency

15/12/2017

German erotic company Beate Uhse filed for insolvency. It struggled to keep its turnover under control in a digital world. Its stores will remain open for the time being. 

Colruyt Group: turnover grows, profit drops

12/12/2017

Colruyt Group’s six-month results clearly show that the increased competition in the Belgian food retail industry is weighing the company down. It is still highly competitive, but its margins are dwindling.

EU needs to lead in fight against protectionism

08/12/2017

(Content provided by EuroCommerce) On the occasion of the European Trade Policy Day today, EuroCommerce urges the European Union to fight against the growing protectionist tendencies everywhere.

Hema returns to profitability

07/12/2017

Hema has become profitable again: after improved net losses in the past quarters, the Dutch chain has managed to become profitable again in the third quarter.

Huge third quarter loss for Hudson’s Bay

07/12/2017

Canadian Hudson’s Bay suffered a huge loss in its third quarter of 2017. Its turnover also slumped compared to the year before.

Hema opens first Belgian flagship stores based on international formula

06/12/2017

Dutch Hema has opened its first Belgian flagship store in Brussels, based on its international store formula. It will open a similar store in Antwerp by the end of the week.

Back to top