| To: Business Editor | For immediate release |
DAIRY FARM SELLS SIMS TRADING TO CITIC PACIFIC
5th February 2001 - Dairy Farm International Holdings Limited today announced that agreement had been reached to sell its Hong Kong-based distribution business, Sims Trading Company Limited, to CITIC Pacific Limited.
Ronald J Floto, Group Chief Executive of Dairy Farm said, "Dairy Farm's strategy is to focus on its core strengths of hypermarket, supermarket, convenience and drugstore retail in the Asia-Pacific Region. The sale of Sims is part of our strategy to redeploy resources into our key businesses and to unlock value from non-core holdings.
"In the past 36 years, Sims and its staff have successfully established themselves as one of the leading distribution businesses in Hong Kong and Macau with a major presence in Mainland China. I believe that CITIC Pacific will continue in Dairy Farm's role as a supportive shareholder and that Sims and its staff will benefit from the opportunities that will come from working closely with the CITIC Pacific group," Mr Floto added.
Under the agreement, Broadview Investments Holdings Limited, a wholly-owned subsidiary of CITIC Pacific Limited, will acquire Sims for a cash consideration of US$58 million (HK$450 million). Dairy Farm will recognise an estimated gain at US$20 million (HK$160 million). Sims' unaudited operating profit before interest for the year ended 31st December 2000 was US$5.7 million (HK$44 million). Dairy Farm will use the proceeds for general corporate funding purposes. The transaction is expected to be completed by end of February 2001.
Acquired by Dairy Farm in 1964, Sims wholesales, distributes and markets foods, beverages and household products in Hong Kong, Macau and Mainland China. The company represents and distributes over 50 international leading brands of food, beverage and household products imported from around the world. Its customer base spans a wide range of businesses, which include supermarkets, convenience stores, drugstores, restaurants, hotels, airline catering, fast food chains, wet markets and cruise ships.
Dairy Farm International Holdings Limited is a leading food and drugstore retailer in the Asia-Pacific Region. At 30th June 2000, the Group and its associates operated over 2,100 outlets, principally supermarkets, hypermarkets, convenience stores and drugstores, and employed some 78,000 people in nine territories. In 1999, the Group had sales of US$6.8 billion.
| For further information, please contact: | |
| Dairy Farm Management Services Ltd | |
| Vijay Yajnik | (852) 2299 1891 |
| (Group CIO & Director, Specialty Businesses) | Email: vyajnik@dairy-farm.com.hk |
| Howard Mowlem | (852) 2299 1870 |
| (Finance Director, North Asia) | Email: hmowlem@dairy-farm.com.hk |
| Golin/Harris Forrest | |
| Bob Fienberg | (852) 2501 7908 |
| Email: bob.fienberg@golinharris.com.hk | |
| Emily Chen | (852) 2501 7927 |
| Email: emily.chen@golinharris.com.hk | |
This and other Group announcements can be accessed through the Internet at "www.dairyfarmgroup.com".
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