| To: Business Editor | For immediate release |
DAIRY FARM TO REDEEM ITS CONVERTIBLE PREFERENCE SHARES
1st June 1998 - Dairy Farm International Holdings Limited today announced that it was to redeem its outstanding 197,921 convertible cumulative preference shares for a total of some US$209.7 million in accordance with their terms.
Commenting on the redemption, Edouard Ettedgui, Group Finance Director of Dairy Farm said, "Dairy Farm has available significant cash resources following recent disposals of non-core operations. Retiring the convertible preference shares will be earnings enhancing while, at the same time, leaving the Group with sufficient resources to pursue our development programme in the Asia-Pacific Region."
The convertible preference shares, which were originally issued in May 1993, will be redeemed on 2nd July 1998. The total redemption price represents US$207.8 million, being 105% of the reference amount of US$1,000 per convertible preference share as required by the original terms of the issue, and US$1.9 million in accrued interest. The redemption is being funded from existing cash resources.
A circular is being sent to the convertible preference Shareholders advising them of the action they should take.
Dairy Farm is an international retailing and wholesaling group focused on the Asia-Pacific Region. At 31st December 1997, Dairy Farm operated 1,352 outlets, principally supermarket, convenience stores and drugstores, and employed some 45,600 people. In 1997, Dairy Farm reported sales of US$6,900 million. The Group also owns a 50% interest in Maxim's Caterers Limited, Hong Kong's largest restaurant and catering company with more than 300 outlets in Hong Kong and Mainland China; and a 32% effective interest in the Jakarta-listed supermarket company, PT Hero Supermarket, which has some 70 outlets in Indonesia.
For further information, please contact:
| Dairy Farm Management Services Limited Edouard Ettedgui | (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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