Under this first agreement, Woolworths will acquire 67 stores for a cash consideration of US$119 million (A$229 million). As at 31st December 2000 the net carrying value of these stores was US$55 million (A$99 million) and the net loss before tax for the year ended 31st December 2000 attributable to these stores was some US$11.5 million (A$20 million). Woolworths will also acquire associated stock and certain personnel-related and other liabilities.
The transaction has received in-principle clearance from the Australian Competition and Consumer Commission, subject to receipt of satisfactory undertakings. These are expected to be finalised shortly and the sale is expected to be completed within six months. The proceeds will be used to reduce debt in Australia. The surplus over carrying value related to this transaction is expected to be offset by closure and related costs of the managed sell-down process.
Negotiations are advanced with other interested parties in respect of the remaining stores, and further announcements will be made in due course.
Dairy Farm is a leading food and drugstore retailer in the Asia-Pacific Region. At 31st December 2000, the Group and its associates operated over 2,200 outlets, principally
supermarkets, hypermarkets, convenience stores and drugstores, employed some 79,000 people in nine territories and had sales of US$6.6 billion in 2000.