STOCKHOLM, Sweden, Nov. 12, 2002 (PRIMEZONE) -- Axfood and Crown NorthCorp Ltd. today signed a letter of intent on the sale of the remainder of Axfood's real estate holdings. The intention is to reach a final agreement before the end of the year.
Axfood's real estate holdings currently have a book value of SEK 500 m, and their sale will have a substantial earnings effect.
The real estate holdings comprise 93 properties, of which 17 are used by businesses that are wholly owned by Axfood.
"Through this sale we will release capital that we can use to further develop our retail trade businesses. This is entirely in line with Axfood's long-term strategy," commented Lars Nilsson, Executive Vice President and CFO of Axfood.
For further information, please contact: Axfood AB Lars Nilsson, Executive Vice President and CEO +46-8-553 998 11/+46-70- 569 66 33 Kenneth Wall, Information Manager tel. +46-8-553 998 20/+46- 703-124 122
Axfood AB is one of the largest listed food wholesale are retail companies in the Nordic market. The company conducts wholesale and retail trading under a number of brand names, including the wholly owned store chains Hemkop, Willys and Willys Hemma, and the Spar and Tempo franchise concepts. Consolidated annual sales are approximately SEK 32 billion, with over 8,000 full-time employees. The Axfood Group has approximately 700 stores in Sweden, of which 250 are wholly or partly owned. The remainder are run by independent grocers tied to the company through agreements. Axfood has some 300 stores in Finland, of which 80 are wholly owned and the remainder operated by independent grocers. The market share is nearly 20% in Sweden and approximately 10% in Finland. Axfood AB is listed on the A-list of the Stockholm Stock Exchange (Stockholm:AXFO). Axel Johnson AB is the principal owner, with approximately 45% of the shares.
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