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Zaandam, The Netherlands -- Ahold has reached agreement to sell its Indonesian operation to PT Hero Supermarket Tbk for approximately Euro 12 million, excluding proceeds from the sale of store inventory. The 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 and operations staff of the stores to be closed are not included in the transaction, although Ahold is committed to meeting its obligations to these associates.
The company says the divestment is part of its strategic plan to restructure its portfolio to focus on high-performing businesses and to concentrate on its mature and most stable markets.
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 Euro 37 million. Ahold employs approximately 1,600 people in Indonesia.