The sale is in accordance with the asset purchase agreement announced on 12 June 2013 and the consent agreement with the Competition Bureau announced on 22 October 2013.
“We are pleased to have completed the sale of our Canadian operations to Sobeys,” said Robert Edwards, president and CEO. “We believe this represents a significant contribution to shareholder value.”
Proceeds from the transaction of C$5.8bn in cash (approximately C$4.0bn after taxes and expenses) and $400-$450m in US tax benefits related to the exit of the Chicago market, will be used to pay down $2.0bn of debt, with the majority of the remainder to be used to buy back stock. In addition, some of the proceeds may be used to invest in growth opportunities.
Source: Safeway
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