BELGIUM: GIB Group Sells Remaining GB shares To Carrefour

Belgian retailer GIB said today (26 July) that it had agreed to sell the rest of its GB supermarket unit to France's Carrefour for Euros 670m.GIB sells to Carrefour the remaining 72.5 per cent it owns in GB. All affiliates of GB are included in this transaction with the exception of Ready, the e-commerce activity, which GIB retains. The transfer of ownership occurs under the condition precedent of approval by the anti-trust authorities. The price for 72.5 per cent, has been set at Euros 670m, one-third of which is to be paid by closing today. The remaining Euros 469m is due to be paid in July 2001. GIB group said that it would assess all options available to optimise its strategy and to create shareholder value. The foundation for the deal was laid in 1998 when GIB's former strategic partner, Promodès, bought 27.5 per cent of GB, an affiliate of GIB. It was agreed that Promodès could progressively increase this participation.Promodès' recent merger with Carrefour, the French supermarket giant, led to today's transfer of ownership.A representative for GB said: "This transaction will provide GB with the best possible means to continue its development on a European scale." The transaction will have a net positive impact of approximately Euros 23 billions on the consolidated year 2000 results of GIB. GIB's other activities, such as DIY, restaurants, specialized distribution and real estate realized system-wide sales of Euros 2.1bn, consolidated sales of Euros 1.4bn and an operating result of almost Euros 73m in 1999, which represents a 29 per cent increase over 1998 (excluding non-recurring items).