Ahold Proposes Reverse Stock Split

AMSTERDAM - Ahold here yesterday said it has proposed a reverse stock split and a cash payment to shareholders in lieu of a previous plan to buy back shares. The company has said it would seek to return value to shareholders following the sale of its U.S. Foodservice distribution business to private equity firms for $7.1 billion. “Ahold has conducted an extensive review of the ways to return the 3 billion euros [about $4 billion] and has concluded that within the Dutch regulatory environment, the most expeditious method is capital repayment and reverse stock split,” the company said in a statement. The repayment would be about $2.55 per share. The proposal is scheduled to be presented at the company’s annual meeting June 19. According to reports, Ahold would consider a 4-for-five stock split, reducing the number of shares by 20%.

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