More woes for Ahold over Chilean subsidiary

When Ahold announced last month that it had dropped into the red for its second quarter, the first losses for several years, the blame was laid squarely at the feet of the Dutch group's Latin American operations. Now the group is facing another problem in Latin America - this time related to its proposed acquisition of the Santa Isabel chain in Chile.

Ahold currently holds 70 per cent of Santa Isabel, but announced last month that it was making a bid for the remaining 30 per cent of the company at a cost of $50 million (€51.6m). However, one of the shareholders in the company has now taken legal action to force the Dutch company to pay more for the remaining shares.

Ahold is obliged under Chilean law to make a bid for the remaining 30 per cent of Santa Isabel after its shareholding in the Chilean firm passed over the 66 per cent threshold with Ahold's takeover of the Disco Ahold International Holdings unit last month. That takeover was prompted by the failure of Ahold's partner, Velox Retail Holdings, to fulfil its financial commitments, and was the principal cause of the slide into the red.

Ahold has bid 190 pesos per share for the outstanding shares in Santa Isabel, an offer which it claims is more than fair, given that it is at a 22.6 per cent premium over the last closing price prior to the bid and a 39% premium over the average share price for the last 30 days.

The lawsuit, which has been filed in the US courts, also alleges that the Santa Isabel management had asked for too low a price because it was pressurised by the Dutch group - a claim which has been roundly denied by the company's president Jorge Guerrero. "It is false to declare that the board of the company is under control or dominated by the controlling shareholder beyond its votes at the time it was elected,"​ Guerrero said.

No date has as yet been set for the case to be heard by the courts, but it must take place by 3 October.