Belgian Delhaize Group will take advantage of the low interest rates on the financial markets to buy back a part of its own bonds, for a maximum amount of 450 million dollars (400 million euro).
Delhaize will focus on bonds which will end in 2017 and 2019. These two have a total value of 750 million dollars (665 million euro), of which Delhaize is willing to buy back up bonds worth up to 450 million dollars. "The goal of the purchase is to control our future debt and lower our current interest cost", Delhaize said in a press release.
Analysts are happy with Delhaize's move: "It shows a solid capital control and emphasizes the board's dedication to its shareholders and the maximization of its worth", satisfied ING analyst Matthias Maenhaut told Belgian business newspaper De Tijd.
Delhaize Group also revealed, earlier this week, that its 2014 turnover would be 3.7 % higher than the year before, reaching 21.3 billion euro. It had a Belgian turnover drop, mostly attributed to the labour union strikes at the end of the year.