Royal Ahold announced that it is “stripping out the value” of its supermarket operations in Paraguay and Peru, which will allow its Santa Isabel chain in Chile to sell those assets. The Chilean group itself is being sold off to local retail group Cencosud, which is not interested in the stores in Paraguay and Peru.
The company is divesting what it sees are “non-core” or underperforming assets in the wake of an accounting scandal that revealed that it had overstated profits by $500 million and that precipitated investigations by numerous Dutch and US authorities, plus a rash of lawsuits by investors and investor groups.
The company is divesting what it sees are “non-core” or underperforming assets in the wake of an accounting scandal that revealed that it had overstated profits by $500 million and that precipitated investigations by numerous Dutch and US authorities, plus a rash of lawsuits by investors and investor groups.
- KC's View:
