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Ahold seeks all of Peapod
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July 16, 2001: 12:09 p.m. ET
Dutch supermarket chain to gain full ownership of Web grocer for $35M
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NEW YORK (CNNfn) - Dutch supermarkets group Koninklijke Ahold NV served a takeover offer Monday to leading Internet grocer Peapod Inc. for the shares of the company it doesn't already own, in a transaction valued at $35 million.
Ahold's proposal to buy the remaining 42 percent, thereby assuming full ownership of Peapod (PPOD: up $0.86 to $2.11, Research, Estimates), involves an offer of $2.15 per share -- a 72 percent premium on Peapod's Friday closing price of $1.25 on the Nasdaq. Ahold currently holds a 58 percent stake in Peapod.
Peapod's board has approved the acquisition, expected to be completed in the third quarter of 2001.
The transaction will be followed by a merger of Peapod with a subsidiary of Ahold, Ahold said in a statement, after which Peapod will be delisted from the Nasdaq.
"Both Peapod and Ahold have absolute confidence in our clicks-and-bricks business model and in the Internet grocery sector. This acquisition will give Peapod the strong financial backing to execute its strategy and build the best possible online grocery company to serve a growing customer base," said Peapod President & CEO Marc Van Gelder.
Peapod provides online grocery shopping in the five major metropolitan areas of Boston, Chicago, southern Connecticut, Long Island and Washington, D.C. In the U.S., Ahold is the parent of such supermarket chains as Stop & Shop and Giant.
Last Friday, Peapod competitor Webvan Group Inc. and three affiliates filed for Chapter 11 bankruptcy protection and shut down operations. 
--from staff and wire reports
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