| To: Business Editor | For immediate release |
DAIRY FARM SELLS SOMERFIELD INTEREST
25th March 1998 -- Dairy Farm International Holdings Limited today announced that it had sold its 11% interest in United Kingdom supermarket chain, Somerfield PLC, for some US$290 million before expenses. The sale was made by way of a placement to institutional investors through Cazenove & Co. and Robert Fleming & Co.
The shares in Somerfield were acquired in consideration of an Offer made for the whole of the issued ordinary share capital of Kwik Save Group PLC. Dairy Farm had previously accepted the Offer from Somerfield for the Group's 29% holding in Kwik Save, and the Offer had been declared unconditional on 20th March 1998.
Commenting on the sale, Dairy Farm's Group Chief Executive, Ronald J Floto, said, "This disposal, following that of Simago, completes our exit from Europe and will allow clear focus on our Asia-Pacific growth strategy."
The carrying value of the original Kwik Save shares in Dairy Farm's consolidated balance sheet at 31st December 1997 was US$209 million. Based on current exchange rates the sale of the Somerfield shares is expected to produce a profit of some US$80 million, after deducting some US$11 million of cumulative currency translation differences, which will be included in the Group's 1998 accounts.
In the year ended 31st December 1997, Kwik Save contributed US$33 million to Dairy Farm's profit before tax. The proceeds from the sale, which are payable in cash, will be used to further develop the Group's Asia-Pacific businesses and for general corporate purposes.
Note: £/US$ exchange rate on 25th March 1998 of £1/$1.67
For further information please contact
| Dairy Farm Management Services Limited Edouard Ettedgui or Simon Neville |
(852) 2837-6481 (office) |
| Ludgate Asia Limited Trish Harwood |
(852) 2543-5413 (office) |
This announcement can be accessed through the Internet at
"http://www.irasia.com/listco/sg/dairyfarm" and is also available through "First Call".
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