Delhaize Group sells interest in Singapore retailer Shop N Save

Delhaize Group, the Belgian international food retailer, has announced it has reached a binding share purchase agreement to sell its 49% shareholding in the Singapore food retailer, Shop N Save, to Singapore retailer Cold Storage Singapore (1983) Pte Ltd, a wholly owned subsidiary of the Hong Kong-based Dairy Farm group for an amount of SGD 44.1 million (EUR 21.9 million). Under the same agreement QAF will also sell its 51% stake in Shop N Save to Dairy Farm. In the fourth quarter of 2003, the sale will result in an estimated capital gain for Delhaize Group of EUR 10.0 million subject to contractual adjustments of the agreement. Closing is due to take place in the coming days. Shop N Save is the third largest food retailer in Singapore. At the end of September 2003, Shop N Save operated 35 stores. In 2002, Shop N Save generated sales of SGD 237.5 million (EUR 140.4 million) and employed 1,157 associates at year-end. Delhaize Group acquired its 49% shareholding in Shop N Save in January 1999 from QAF, a Singaporean listed company. QAF retained the remaining 51% stake in Shop N Save. Jean-Claude Coppieters, Executive Vice President of Delhaize Group and in charge of the Asian operations of the Group, commented: "We have been pleased with our partnership in Singapore and with the progress of our banner there. The attractive purchase proposal from Dairy Farm allows Delhaize Group to generate additional cash and to refocus on our two original Asian ventures in Thailand and Indonesia. Because of their strong position in the marketplace, Dairy Farm is well-positioned to continue Shop N Save's successful development."