SALISBURY, N.C. -- Shareholders of Delhaize America will meet Wednesday in New York to consider and vote on an agreement for a statutory share exchange with its parent company, Delhaize Group, Brussels.
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Under the proposal, Delhaize Group would exchange outstanding shares of Class A and Class B stock of Delhaize America not currently held by the parent company for 0.4 shares of Delhaize Group.
Public shareholders of Delhaize America would then be offered the option of receiving shares of either Delhaize Group or American Depositary Shares in the form of American Depositary Receipts listed on the New York Stock Exchange.
Delhaize Group and Delhaize America said last week they have filed an amendment to their registration statement with the Securities and Exchange Commission in connection with the proposed share exchange.
The companies said the amended filing reflects full-year financial results for Delhaize America, which updates results for the first three quarters of the year that were available late last month when the document was originally filed.
In other news last week, the Food Lion division of Delhaize America said it plans to close its distribution center in Green Cove Springs, Fla., effective as soon as the transition of service to another facility can be completed.
The company said the 65 Food Lion stores that are served by the facility will be serviced instead by the chain's distribution center in Elloree, S.C. The stores all operate in the Jacksonville, Fla., area.
Food Lion said the 832,000-square-foot Green Cove Springs warehouse is the smallest of its eight distribution centers and handles the lowest volume of product.
The decision to close the facility came "after a long-term evaluation," the company said. Employees of the Green Cove Springs facility will be offered jobs at other Food Lion locations, the company added.
