<PAGE> 1
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
AMENDMENT NO. 1
TO
SCHEDULE 14D-1
TENDER OFFER STATEMENT
PURSUANT TO SECTION 14(D)(1) OF THE SECURITIES EXCHANGE ACT OF 1934
------------------------
GIANT FOOD INC.
(NAME OF SUBJECT COMPANY)
------------------------
KONINKLIJKE AHOLD N.V.
(ROYAL AHOLD)
(BIDDER)
------------------------
CLASS A COMMON STOCK, PAR VALUE $1.00 PER SHARE
(TITLE OF CLASS OF SECURITIES)
------------------------
374478105
(CUSIP NUMBER OF CLASS OF SECURITIES)
------------------------
PAUL P.J. BUTZELAAR, ESQ.
KONINKLIJKE AHOLD N.V.
ALBERT HEIJNWEG 1
1507 EH ZAANDAM, THE NETHERLANDS
011-31-75-6598111
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED
TO RECEIVE NOTICES AND COMMUNICATIONS ON BEHALF OF BIDDER)
------------------------
COPY TO:
MAUREEN S. BRUNDAGE, ESQ.
WHITE & CASE LLP
1155 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
(212) 819-8200
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<PAGE> 2
SCHEDULE 14D-1
<TABLE>
<S> <C> <C> <C> <C> <C>
- ------------------------------
CUSIP NO. 374478105
- ------------------------------
<CAPTION>
<S> <C>
===
- ------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
KONINKLIJKE AHOLD N.V.
- ------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
[ ]
(b) [ ]
- ------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
BK
- ------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(e) or 2(f) [
]
- ------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
THE NETHERLANDS
- ------------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON
0
- ------------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES [
]
- ------------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
0.0%
- ------------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON
CO
- ------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
This Amendment No. 1 amends and supplements Items 3, 5, 6, 10 and 11 of the
Schedule 14D-1 filed on May 19, 1998 (the "Schedule 14D-1") relating to the
offer by Koninklijke Ahold N.V., a public company with limited liability
incorporated under the laws of The Netherlands with its corporate seat in
Zaandam (Municipality Zaanstaad) (the "Purchaser"), to purchase for cash all of
the outstanding shares of Class A Common Stock, par value $1.00 per share (the
"Shares"), of Giant Food Inc., a Delaware corporation (the "Company"), at a
price of $43.50 per share (the "Offer Price"), net to the seller in cash,
without interest thereon, upon the terms and subject to the conditions set forth
in the Offer to Purchase, dated May 19, 1998 (the "Offer to Purchase"), and in
the related Letter of Transmittal and Notice of Guaranteed Delivery (which,
together with any amendments or supplements thereto, collectively constitute the
"Offer").
ITEM 3. PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS WITH THE SUBJECT COMPANY.
Item 3 of the Schedule 14D-1 is hereby amended and restated to read in its
entirety as follows:
"(a)-(b) The information set forth on the cover page of the Offer to
Purchase (as amended below), in the "Introduction" of the Offer to Purchase
(as amended below) and in Sections 8 ("Certain Information Concerning the
Purchaser"), 10 ("Background of the Offer; Contacts with the Company") (as
amended below) and 11 ("Purpose of the Offer; Plans for the Company; Stock
Purchase Agreement; Sainsbury Agreement") (as amended below) of the Offer
to Purchase is incorporated herein by reference."
The cover page of the Offer to Purchase is hereby amended by adding in the
third paragraph immediately prior to the last sentence the following:
"The Purchaser and Sainsbury have entered into a Stock Purchase
Agreement dated as of May 27, 1998 documenting their agreement."
The "Introduction" of the Offer to Purchase is amended by adding in the
fifth paragraph immediately prior to the last sentence the following:
"The Purchaser has entered into a Stock Purchase Agreement dated as of
May 27, 1998 with Sainsbury and JS Mass Securities Corp. ("JS Mass"), a
wholly-owned subsidiary of Sainsbury, documenting the agreement between the
Purchaser and Sainsbury."
The "Introduction" of the Offer to Purchase is further amended by amending
and restating the eighth paragraph to read in its entirety as follows:
"THE PURCHASER HAS BEEN ADVISED THAT PAINEWEBBER INCORPORATED
("PAINEWEBBER"), THE FINANCIAL ADVISOR TO THE SELLING SHAREHOLDER, HAS
DELIVERED TO THE BOARD OF DIRECTORS OF THE SELLING SHAREHOLDER ITS WRITTEN
OPINION DATED MAY 18, 1998 (WHICH OPINION WAS DELIVERED PRIOR TO THE
INCREASE IN THE OFFER PRICE FROM $43.00 TO $43.50), THAT, AS OF SUCH DATE
AND BASED UPON ITS REVIEW AND ANALYSIS AND SUBJECT TO THE LIMITATIONS SET
FORTH THEREIN, THE PRICE OF $43.00 PER SHARE NET TO THE HOLDER OF THE CLASS
AC SHARES IN CASH PURSUANT TO THE STOCK PURCHASE AGREEMENT IS FAIR, FROM A
FINANCIAL POINT OF VIEW, TO SUCH STOCKHOLDER. A COPY OF THE OPINION OF
PAINEWEBBER, WHICH SETS FORTH THE ASSUMPTIONS MADE, FACTORS CONSIDERED AND
SCOPE OF REVIEW UNDERTAKEN BY PAINEWEBBER, IS CONTAINED IN THE
SOLICITATION/ RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 FILED BY THE
SELLING SHAREHOLDER, WHICH IS BEING MAILED TO HOLDERS OF THE SHARES
CONCURRENTLY HEREWITH. HOLDERS OF THE SHARES ARE URGED TO READ THE FULL
TEXT OF SUCH OPINION."
Section 10 ("Background of the Offer; Contacts with the Company") of the
Offer to Purchase is amended by inserting the following paragraph after the last
paragraph thereof:
"During the period from May 19 through May 27, 1998, representatives
of the Purchaser and Sainsbury and their legal advisors negotiated the
terms of a stock purchase agreement. As a result thereof, the Purchaser,
Sainsbury and JS Mass entered into a Stock Purchase Agreement dated as of
May 27, 1998 (the "Sainsbury Agreement") reflecting the May 19 oral
agreement of the parties."
2
<PAGE> 4
Section 11 ("Purpose of the Offer; Plans for the Company; Stock Purchase
Agreement; Sainsbury Agreement") of the Offer to Purchase is amended as follows:
The first sentence of the paragraph under the caption "Purpose of the
Offer" in Section 11 is hereby amended and restated to read in its entirety
as follows:
"The purpose of the Offer and the Purchaser's acquisition of the
Class AC Shares pursuant to the Stock Purchase Agreement and of the
Class AL Shares pursuant to the Sainsbury Agreement is to enable the
Purchaser to acquire control of the Company's Board of Directors and the
entire equity interest in the Company."
The second sentence of the second paragraph under the caption "Plans
for the Company" in Section 11 is hereby amended and restated to read in
its entirety as follows:
"As a condition to the purchase of the Class AL Shares pursuant to
the Sainsbury Agreement, each person who has been elected by Sainsbury
to the Board of Directors of the Company must have either resigned or
been removed as a director of the Company."
Section 11 of the Offer to Purchase is hereby further amended by amending
and restating the subsection captioned "Sainsbury Agreement" to read in its
entirety as follows:
"SAINSBURY AGREEMENT. THE FOLLOWING IS A SUMMARY OF THE MATERIAL TERMS OF
THE SAINSBURY AGREEMENT. THE SUMMARY IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO THE SAINSBURY AGREEMENT A COPY OF WHICH HAS BEEN FILED WITH THE COMMISSION AS
AN EXHIBIT TO THE SCHEDULE 14D-1, AS AMENDED. THE SAINSBURY AGREEMENT MAY BE
INSPECTED AT, AND COPIES MAY BE OBTAINED FROM, THE SAME PLACES AND IN THE MANNER
SET FORTH IN SECTION 7.
Purchase of the Class AL Shares. Pursuant to the Sainsbury Agreement, JS
Mass has agreed, and Sainsbury has agreed to cause JS Mass, to sell, and the
Purchaser has agreed to purchase, subject to the terms and conditions thereof,
all of the Class AL Shares at an aggregate price of $100,000,000. JS Mass has
agreed in the Sainsbury Agreement to tender pursuant to the Offer, upon the
terms and subject to the conditions set forth in the Sainsbury Agreement, all of
the Shares owned by JS Mass. The obligation of the Purchaser to purchase the
Class AL Shares is subject to the satisfaction of the following conditions: the
truth of Sainsbury's and JS Mass' representations and warranties, the
performance by Sainsbury and JS Mass of their respective covenants, no
injunctions, receipt of consents and approvals, the non-occurrence of the
conditions set forth in Section 14 hereof, the resignation of the Directors of
the Company elected by Sainsbury, the consummation of the purchase of the Class
AC Shares pursuant to the Stock Purchase Agreement and the consummation of the
Offer. The obligation of JS Mass to, and of Sainsbury to cause JS Mass to, sell
the Class AL Shares is subject to the satisfaction of the following conditions:
the truth of the representations and warranties of the Purchaser, the
performance by the Purchaser of its covenants, no injunctions, the consummation
of the Offer and the consummation of the purchase of the Class AC Shares
pursuant to the Stock Purchase Agreement.
No Solicitation. The Sainsbury Agreement provides that Sainsbury, JS Mass
and each of their respective officers, directors and employees shall, and shall
instruct their respective Agents to, immediately cease any discussions or
negotiations with any other parties that may be ongoing with respect to any
purchase of the Class AL Shares or any Sainsbury Acquisition Proposal (as
defined below). Neither Sainsbury nor JS Mass shall, directly or indirectly,
take (and neither Sainsbury nor JS Mass shall authorize or permit its Agents to
so take) any action to (i) encourage, solicit or initiate the making of any
offer to purchase the Class AL Shares or any Sainsbury Acquisition Proposal,
(ii) enter into any agreement with respect to any offer to purchase the Class AL
Shares or any Sainsbury Acquisition Proposal, or (iii) participate in any way in
discussions or negotiations with, or furnish or disclose any information to, any
person (other than the Purchaser) in connection with, or take any other action
to facilitate knowingly, or that such person should have known would facilitate,
any inquiries or the making of any proposal that constitutes, or may reasonably
be expected to lead to, any offer to purchase the Class AL Shares or any
Sainsbury Acquisition Proposal. For purposes of this Section, "Sainsbury
Acquisition Proposal" shall mean any inquiry, proposal or offer from any person
(other than the Purchaser) relating to any direct orindirect acquisition or
purchase of all or any of the Class AL Shares, of a substantial amount of assets
of the Company or any of its subsidiaries or of more than 10% of any class of
equity securities of the Company or any of its subsidiaries, any tender offer or
exchange
3
<PAGE> 5
offer that if consummated would result in any person beneficially owning more
than 10% of any other class of equity securities of the Company or any of its
subsidiaries, any merger, consolidation, business combination, sale of
substantially all the assets, recapitalization, liquidation, dissolution or
similar transaction involving the Company or any of its subsidiaries, other than
the transactions contemplated by the Sainsbury Agreement, or any other
transaction involving the Company or any of its securities or assets the
consummation of which could reasonably be expected to impede, interfere with,
prevent or materially delay the Offer, the acquisition of the Class AL Shares
pursuant to the Sainsbury Agreement or the acquisition of the Class AC Shares
pursuant to the Stock Purchase Agreement. In addition, the Sainsbury Agreement
provides that each of Sainsbury and JS Mass shall advise the Purchaser of any
request for information or of any offer to purchase the Class AL Shares or any
Sainsbury Acquisition Proposal, or any inquiry or proposal with respect to any
offer to purchase the Class AL Shares or any Sainsbury Acquisition Proposal, the
material terms and conditions of such request, offer or Sainsbury Acquisition
Proposal and of any material changes thereto, and the identity of the entity or
person making any such inquiry or proposal.
Agreement to Use Best Efforts. Pursuant to the Sainsbury Agreement and
subject to the terms and conditions thereof, each of Sainsbury, JS Mass and the
Purchaser shall, with respect to matters within their respective control,
cooperate and use their respective best efforts to (i) take, or cause to be
taken, all appropriate action, and do, or cause to be done, all reasonable
things necessary and proper under applicable law to consummate the transactions
contemplated by the Sainsbury Agreement as promptly as practicable, (ii) obtain
from any governmental authority, regulatory organization or other
instrumentality or agency or any other third party any licenses, permits,
consents, waivers, approvals, authorizations, qualifications, or orders required
to be obtained or made by Sainsbury, JS Mass or the Purchaser or any of their
subsidiaries in connection with the authorization, execution and delivery of the
Sainsbury Agreement and the consummation of the transactions contemplated
therein, and (iii) as promptly as practicable, make, or cause to be made, all
filings necessary, proper or advisable with respect to the Sainsbury Agreement
and the transactions contemplated therein under any applicable laws or
regulations. In addition, the Sainsbury Agreement provides that Sainsbury, JS
Mass and the Purchaser shall cooperate with each other in connection with the
making of all such filings, including providing copies of all such documents to
the non-filing party and its advisors prior to filing and, if requested, to
accept all reasonable additions, deletions or changes suggested in connection
therewith. Sainsbury, JS Mass and the Purchaser shall use their respective best
efforts to furnish to each other all information required for any application or
other filing to be made pursuant to the rules and regulations of any applicable
law in connection with the transactions contemplated by the Sainsbury Agreement.
Notwithstanding anything to the contrary in this paragraph, none of Sainsbury,
JS Mass, the Purchaser or the Company or any of their respective subsidiaries
shall be required to sell or otherwise dispose of, or hold separate (through the
establishment of a trust or otherwise) particular assets or categories of
assets, or business of the Purchaser, Sainsbury, JS Mass, the Company or any of
their affiliates or withdraw from doing business in a particular jurisdiction or
take any other action that, in the aggregate, in the sole judgment of the
Purchaser, would reasonably be expected to substantially impair or substantially
reduce the Purchaser's ability to control, direct or manage on a day-to-day
basis the business or affairs of the Company or to substantially impair or
reduce the overall benefits expected, as of the date hereof, to be realized by
the Purchaser from the consummation of the transactions contemplated by the
Sainsbury Agreement or would have a material adverse effect on the business,
properties, assets, liabilities, condition (financial or otherwise), prospects,
operations or results of operations of the Purchaser and its subsidiaries taken
as a whole or the Company and its subsidiaries taken as a whole.
Representations and Warranties. In the Sainsbury Agreement, Sainsbury and
JS Mass have made customary representations and warranties to the Purchaser with
respect to, among other things, their organization, corporate authority,
ownership of the Class AL Shares and consents and approvals.
Termination. If any precondition to the completion of the transactions
contemplated by the Sainsbury Agreement is not fulfilled on or prior to December
31, 1998, then any party may terminate the Sainsbury Agreement. In addition, the
Sainsbury Agreement shall terminate if the Stock Purchase Agreement or the Offer
shall be terminated pursuant to their respective terms prior to the purchase of
any Class AL Shares pursuant to the Sainsbury Agreement."
4
<PAGE> 6
ITEM 5. PURPOSE OF THE TENDER OFFER AND PLANS OR PROPOSALS OF THE BIDDER.
Item 5 of the Schedule 14D-1 is amended and restated to read in its
entirety as follows:
"(a)-(g) The information set forth in the "Introduction" (as amended
in Item 3 of this Amendment), and Sections 10 ("Background of the Offer;
Contacts with the Company") (as amended by Item 3 of this Amendment), 11
("Purpose of the Offer; Plans for the Company; Stock Purchase Agreement;
Sainsbury Agreement") (as amended by Item 3 of this Amendment), 12
("Dividends and Distributions") and 13 ("Effect of the Offer on the Market
for Shares; Exchange Listing and Exchange Act Registration") of the Offer
to Purchase is incorporated herein by reference."
ITEM 6. INTEREST IN SECURITIES OF THE SUBJECT COMPANY.
Item 6 of the Schedule 14D-1 is amended and restated to read in its
entirety as follows:
"(a)-(b) The information set forth in Sections 8 ("Certain Information
Concerning the Purchaser") and 10 ("Background of the Offer; Contacts with
the Company") (as amended by Item 3 of this Amendment), is incorporated
herein by reference."
ITEM 7. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO THE SUBJECT COMPANY'S SECURITIES.
Item 7 of the Schedule 14D-1 is amended and restated to read in its
entirety as follows:
"The information set forth in the "Introduction" of the Offer to
Purchase (as amended in Item 3 of this Amendment) and Sections 10
("Background to the Offer; Contacts with the Company") (as amended by Item
3 of this Amendment) and 11 ("Purpose of the Offer; Plans for the Company;
Stock Purchase Agreement; Sainsbury Agreement") (as amended in Item 3 of
this Amendment) is incorporated herein by reference."
ITEM 10. ADDITIONAL INFORMATION.
Paragraphs (b)-(c) of Item 10 of the Schedule 14D-1 are amended and
restated to read in its entirety as follows:
"(b)-(c) The information set forth in Section 15 ("Certain Legal
Matters; Regulatory Approvals") of the Offer to Purchase (as amended below)
is incorporated herein by reference."
Section 15 ("Certain Legal Matters; Regulatory Approvals") of the Offer to
Purchase is amended by amending and restating the first two sentences of the
second paragraph under the subcaption "Regulatory Approvals" to read in their
entirety as follows:
"Under the provisions of the HSR Act applicable to the purchase of
Class AC Shares pursuant to the Stock Purchase Agreement, such purchase may
not be made until the expiration of a 30-calendar day waiting period
following the required filing of a Notification and Report Form under the
HSR Act by both the Purchaser and the Selling Shareholder, which filings
the Purchaser and the Selling Shareholder completed on or about May 27,
1998. Accordingly, the waiting period under the HSR Act will expire at
11:59 P.M., New York City time, on or about June 26, 1998, unless early
termination of the waiting period is granted or the Purchaser or the
Selling Shareholder receives a request for additional information or
documentary material prior thereto."
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
The information contained in Item 11 of the Schedule 14D-1 is hereby
amended by adding thereto as Exhibit (a)(9) the Press Release dated May 27, 1998
announcing execution of the Stock Purchase Agreement dated as of May 27, 1998
among Koninklijke Ahold N.V., J Sainsbury plc and JS Mass Securities Corp. and
as Exhibit (c)(4) the Stock Purchase Agreement dated as of May 27, 1998 among
Koninklijke Ahold N.V., J Sainsbury plc and JS Mass Securities Corp.
5
<PAGE> 7
SIGNATURE
The Reporting Person certifies that, after reasonable inquiry and to the
best of its knowledge and belief, the information set forth in this statement is
true, complete and correct.
KONINKLIJKE AHOLD N.V.
By: /s/ PAUL P.J. BUTZELAAR
------------------------------------
Name: Paul P.J. Butzelaar
Title: Senior Vice President
and General Counsel
Dated: May 28, 1998
6
<PAGE> 8
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NUMBERED
NUMBER DESCRIPTION PAGES
------- ----------- --------
<S> <C> <C>
Exhibit (a)(1) Offer to Purchase.* .........................................
Exhibit (a)(2) Letter of Transmittal.* .....................................
Exhibit (a)(3) Form of letter to brokers, dealers, commercial banks, trust
companies and other nominees.* ..............................
Exhibit (a)(4) Form of letter to be used by brokers, dealers, commercial
banks, trust companies and nominees to their clients.* ......
Exhibit (a)(5) Press Release, dated May 19, 1998, announcing the tender
offer.* .....................................................
Exhibit (a)(6) Form of newspaper advertisement, dated May 20, 1998,
published in The Wall Street Journal.* ......................
Exhibit (a)(7) Notice of Guaranteed Delivery.* .............................
Exhibit (a)(8) Guidelines for Substitute Form W-9.* ........................
Exhibit (a)(9) Press Release dated May 29, 1998 announcing execution of the
Stock Purchase Agreement dated as of May 27, 1998 among
Koninklijke Ahold N.V., J Sainsbury plc and
JS Mass Securities Corp. ....................................
Exhibit (b)(1) Commitment Letter, dated May 18, 1998 between ABN AMRO Bank
NV and Koninklijke Ahold N.V.* ..............................
Exhibit (b)(2) US$1,000,000,000 Multicurrency Revolving Credit Agreement,
made on 18 December 1996 between Koninklijke Ahold N.V.,
Ahold USA Holdings, Inc. and a syndicate of banks headed by
ABN Amro Bank N.V.* .........................................
Exhibit (c)(1) Confidentiality Agreement, made as of February 2, 1998,
between Koninklijke Ahold N.V. and The 1224 Corporation.* ...
Exhibit (c)(2) Exclusivity Agreement, dated April 27, 1998, between
Koninklijke Ahold N.V. and The 1224 Corporation.* ...........
Exhibit (c)(3) Stock Purchase Agreement, dated as of May 19, 1998, between
Koninklijke Ahold N.V. and The 1224 Corporation.* ...........
Exhibit (c)(4) Stock Purchase Agreement dated as of May 27, 1998 among
Koninklijke Ahold N.V., J Sainsbury plc and
JS Mass Securities Corp. ....................................
Exhibit (d) None. .......................................................
Exhibit (e) Not applicable. .............................................
Exhibit (f) None. .......................................................
</TABLE>
* Previously filed.
<PAGE> 1
Ahold and Sainsbury signed agreement on Giant Food Inc.
Zaandam, The Netherlands, May 29, 1998 - Royal Ahold, the international food
retailer, has announced the signing of an agreement with the British
supermarket company J Sainsbury plc for the sale to Ahold by Sainsbury of all
of the Giant Food Inc. voting Class AL shares for an aggregate purchase price
of USD 100 million on the terms and conditions set forth in the agreement. In
the agreement Sainsbury also has agreed to tender, pursuant to Royal Ahold's
tender offer, its approximately 11.8 million non-voting Class A shares of Giant
Food Inc.
Royal Ahold and the 1224 Corporation announced on May 19, 1998, they had
entered into an agreement for the purchase by Ahold of all the voting Class AC
shares in Giant Food Inc. held by the 1224 Corporation, upon the terms and
conditions set forth in the agreement.
Pursuant to the agreement with the 1224 Corporation, Ahold has commenced a
tender offer for all the outstanding non-voting Class A shares of Giant Food
Inc., approximately 60 million shares, at the price of USD 43.50 per share.
This represents an aggregate purchase price of approximately USD 2.6 billion.
Completion of the tender offer and the acquisition of the Class AL and Class AC
shares are subject to obtaining necessary regulatory approvals and certain
other conditions.
<PAGE> 1
STOCK PURCHASE AGREEMENT
Dated as of May 27, 1998
By and Among
J SAINSBURY PLC,
JS MASS. SECURITIES CORP.
and
KONINKLIJKE AHOLD N.V.
(Royal Ahold)
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
Page
<S> <C>
ARTICLE I
DEFINITIONS................................................................................................. 1
Section 1.1 Definitions....................................................................... 1
ARTICLE II
SALE OF STOCK AND TENDER OFFER.............................................................................. 4
Section 2.1 Sale of Transferred Shares........................................................ 4
Section 2.2 Purchase Price for Transferred Shares............................................. 4
Section 2.3 Closing........................................................................... 4
Section 2.4 Transfer Taxes.................................................................... 4
Section 2.5 Tender of Class A Shares.......................................................... 4
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE PARENT AND THE SELLER................................................. 5
Section 3. Representations and Warranties of the Parent and the Seller................................. 5
Section 3.1 Legal Status...................................................................... 5
Section 3.2 Power and Authority; Enforceability............................................... 5
Section 3.3 Ownership of Transferred Shares................................................... 5
Section 3.4 No Conflicts; Consents of Third Parties; Compliance with Laws..................... 6
Section 3.5 Broker's or Finder's Fees......................................................... 6
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER............................................................. 6
Section 4. Representations and Warranties of the Purchaser............................................. 6
Section 4.1 Legal Status...................................................................... 6
Section 4.2 Power and Authority; Enforceability............................................... 6
Section 4.3 No Conflicts...................................................................... 7
Section 4.4 Broker's or Finder's Fees......................................................... 7
Section 4.5 Available Funds................................................................... 7
Section 4.6 Securities Act.................................................................... 7
ARTICLE V
EXCLUSIVE DEALING, OTHER COVENANTS.......................................................................... 8
Section 5.1 Exclusive Dealing................................................................. 8
Section 5.2 Further Assurances................................................................ 9
Section 5.3 Resignations...................................................................... 9
Section 5.4 Provisions Concerning Transferred Shares.......................................... 9
</TABLE>
<PAGE> 3
<TABLE>
<S> <C>
Section 5.5 Restriction on Transfer, Proxies and Non-Interference............................ 9
Section 5.6 Changes in Shares................................................................ 10
Section 5.7 Changes in Tender Offer.......................................................... 10
Section 5.8 Tender Offer Conditions.......................................................... 10
Section 5.9 Purchase of the Class A Shares and the Transferred Shares........................ 10
ARTICLE VI
CONDITIONS TO THE PURCHASER'S OBLIGATIONS................................................................... 10
Section 6. Conditions to the Purchaser's Obligations................................................... 10
Section 6.1 Truth of Representations and Warranties.......................................... 10
Section 6.2 Performance of Agreements........................................................ 11
Section 6.3 Injunction....................................................................... 11
Section 6.4 Consents and Approvals........................................................... 11
Section 6.5 Tender Offer Conditions......................................................... 11
Section 6.6 Resignations..................................................................... 11
Section 6.7 Class AC Stock Purchase Agreement................................................ 12
Section 6.8 Tender Offer..................................................................... 12
ARTICLE VII
CONDITIONS TO THE OBLIGATIONS OF THE PARENT AND THE SELLER.................................................. 12
Section 7. Conditions to the Obligations of the Parent and the Seller.................................. 12
Section 7.1 Truth of Representations and Warranties.......................................... 12
Section 7.2 Performance of Agreements........................................................ 12
Section 7.3 Injunction....................................................................... 12
Section 7.4 Tender Offer..................................................................... 12
Section 7.5 Class AC Stock Purchase Agreement................................................ 13
ARTICLE VIII
MISCELLANEOUS............................................................................................... 13
Section 8.1 Representations and Warranties................................................... 13
Section 8.2 Expenses......................................................................... 13
Section 8.3 Governing Law.................................................................... 13
Section 8.4 Headings......................................................................... 14
Section 8.5 Publicity........................................................................ 14
Section 8.6 Notices.......................................................................... 14
Section 8.7 Binding Effect; Benefit; Assignment.............................................. 15
Section 8.8 Best Efforts..................................................................... 15
Section 8.9 Counterparts..................................................................... 16
Section 8.10 Entire Agreement................................................................. 16
Section 8.11 Amendments....................................................................... 16
Section 8.12 Severability..................................................................... 16
Section 8.13 Termination of Agreement......................................................... 16
Section 8.14 Specific Performance............................................................. 16
Section 8.15 Remedies Cumulative.............................................................. 17
Section 8.16 No Waiver........................................................................ 17
</TABLE>
<PAGE> 4
STOCK PURCHASE AGREEMENT
STOCK PURCHASE AGREEMENT (this "Agreement") dated as of May
27, 1998, by and among J Sainsbury plc, a corporation organized and existing
under the laws of England and Wales (the "Parent"), JS Mass. Securities Corp., a
corporation organized and existing under the laws of the State of Massachusetts
and a wholly-owned subsidiary of Parent (the "Seller"), and Koninklijke Ahold
N.V. (Royal Ahold), a public company with limited liability organized under the
laws of the Netherlands with its corporate seat in Zaandam (Municipality
Zaanstad) (the "Purchaser").
W I T N E S S E T H :
WHEREAS, the Parent and the Seller own beneficially and the
Seller will prior to and at the Closing (as hereinafter defined) own of record
125,000 shares of Class AL Common Stock, par value $1.00 per share (the "Class
AL Shares"), and 11,779,931 shares of Class A Common Stock, par value $1.00 per
share (the "Class A Shares"), in each case of Giant Food Inc., a corporation
organized and existing under the laws of the State of Delaware (the
"Corporation");
WHEREAS, the Seller desires to sell, and the Purchaser desires
to purchase, all of the Class AL Shares (such Class AL Shares, collectively, the
"Transferred Shares"), on the terms and subject to the conditions set forth in
this Agreement; and
WHEREAS, the Purchaser has made a tender offer to purchase any
and all of the issued and outstanding Class A Shares, subject to the terms and
conditions set forth in the Offer to Purchase dated May 19, 1998 (the "Offer to
Purchase") (including, without limitation, the conditions set forth in Section
14 thereof (the "Tender Offer Conditions") (the "Tender Offer"), at a price per
share equal to $43.50 (the "Tender Offer Price").
NOW, THEREFORE, in consideration of the premises and of the
promises hereinafter set forth, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Definitions. When used in this Agreement, the
following terms shall have the respective meanings specified therefor below
(such meanings to be equally applicable to both the singular and plural forms of
the terms defined).
"Acquisition Proposal" shall have the meaning provided in
Section 5.1(a) hereof.
"Affiliate" shall mean, with respect to any Person, any other
Person directly or indirectly controlling, controlled by, or under direct or
indirect common control with, such Person. A Person shall be deemed to control
another Person if such Person possesses, directly or
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indirectly, the power to direct or cause the direction of the management and
policies of such other Person, or the power to appoint or dismiss the managing
directors of such other Person, whether through the ownership of voting
securities, by contract or otherwise; provided that, for purposes of this
Agreement, the Corporation shall not be deemed an Affiliate of the Parent or the
Seller.
"Agents" shall have the meaning provided in Section 5.1(a)
hereof.
"Agreement" shall have the meaning provided in the recitals
hereto.
"Class AC Shares" shall mean the shares of Class AC Common
Stock, par value $1.00 per share, of the Corporation.
"Class AC Stock Purchase Agreement" shall mean the Stock
Purchase Agreement dated as of May 19, 1998 by and between the Purchaser and the
Selling AC Shareholder, as such agreement may be amended from time to time.
"Class AL Shares" shall have the meaning provided in the
recitals hereto.
"Class A Shares" shall have the meaning provided in the
recitals hereto.
"Closing" shall have the meaning provided in Section 2.3
hereof.
"Closing Date" shall have the meaning provided in Section 2.3
hereof.
"Corporation" shall have the meaning provided in the recitals
hereto.
"Director" shall have the meaning provided in Section 6.6
hereof.
"Existing Class A Shares" shall have the meaning provided in
Section 2.5 hereof.
"HSR Act" shall have the meaning set forth in Section 4.3(b)
hereof.
"Law" shall mean any constitution, treaty, statute, law, code,
ordinance, decree, order, rule, regulation, or judicial or arbitral decision or
judgment.
"Liens" shall mean liens, security interests, options, rights
of first refusal, charges, adverse claims, security agreements, or any other
encumbrances; provided, however, that with respect to the Transferred Shares,
"Liens" shall not include any restrictions imposed upon such Transferred Shares
by this Agreement, the Certificate of Incorporation or By-Laws of the
Corporation or the provisions of the General Corporation Law of the State of
Delaware.
"Offer to Purchase" shall have the meaning provided in the
recitals hereto.
"Parent" shall have the meaning provided in the preamble
hereto.
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"Person" shall mean any individual, partnership, limited
liability company, corporation, trust, unincorporated association or other
entity which is recognized as having legal personality under national or
international Law.
"Purchase Price" shall have the meaning provided in Section
2.2 hereof.
"Purchaser" shall have the meaning provided in the preamble
hereto.
"Securities Act" shall have the meaning provided in Section
4.6 hereof.
"Seller" shall have the meaning provided in the preamble
hereto.
"Seller's Class A Shares" shall have the meaning provided in
Section 2.5 hereof.
"Selling AC Shareholder" shall mean The 1224 Corporation, a
corporation organized and existing under the laws of the State of Delaware.
"Share Register" shall mean, collectively, the register books
maintained by the Corporation setting forth the names and addresses of each of
the owners of the shares of capital stock of the Corporation and the number of
such shares owned by each such owner, and indicating each transfer or
encumbrance of such shares by any owner thereof.
"Tax" or "Taxes" shall mean any net income, alternative or
add-on minimum tax, advance corporation, gross income, gross receipts, sales,
use, ad valorem, franchise, profits, license, value-added, withholding, payroll,
employment, excise, transfer, stamp or occupation tax, governmental fee or other
like assessment or charge of any kind whatsoever, together with any interest or
any penalty imposed by any governmental authority with respect thereto and any
liability for such amounts as a result of either being a member of an affiliated
group or of a contractual obligation to indemnify any other entity.
"Tender Offer" shall have the meaning provided in the recitals
hereto.
"Tender Offer Conditions" shall have the meaning provided in
recitals hereto.
"Tender Offer Documents" shall have the meaning provided in
Section 2.6(b) hereof.
"Tender Offer Price" shall have the meaning provided in the
recitals hereto.
"Transferred Shares" shall have the meaning provided in the
recitals hereto.
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ARTICLE II
SALE OF STOCK AND TENDER OFFER
Section 2.1 Sale of Transferred Shares. On the terms and
subject to the conditions set forth in this Agreement, the Seller agrees and the
Parent agrees to cause the Seller, to sell and transfer to the Purchaser at the
Closing, and the Purchaser agrees to purchase from the Seller at the Closing,
the Transferred Shares, free and clear of all Liens. At or immediately following
the Closing, each of the Parent and the Seller shall use its reasonable best
efforts to cause the Corporation to duly enter the transfer of the Transferred
Shares in the Share Register.
Section 2.2 Purchase Price for Transferred Shares. In full
consideration for the purchase by the Purchaser of the Transferred Shares, the
Purchaser shall pay to the Seller (or its designee) on the Closing Date One
Hundred Million Dollars ($100,000,000) in the aggregate by wire transfer in
immediately available funds to the account specified by the Seller to the
Purchaser at least two business days prior to the Closing (the "Purchase
Price"). For purposes of this Section 2.2, "business day" shall mean any day
other than a Saturday, a Sunday or a day on which the banks in the United States
or the Netherlands are authorized or obligated by Law to close.
Section 2.3 Closing. The sale referred to in Section 2.1 (the
"Closing") shall take place at the offices of White & Case LLP, 601 Thirteenth
Street, NW, Suite 600 South, Washington, DC, as soon as practicable after the
last of the conditions set forth in Articles VI and VII hereof is fulfilled or
waived (subject to applicable law) but (a) in no event later than the fifth
business day thereafter, or at such other time and place and on such other date
as the Purchaser and the Seller shall mutually agree and (b) in any case
simultaneously with the purchase of Class A Shares validly tendered pursuant to
the Tender Offer (the "Closing Date"). On the Closing Date, the Seller shall,
and the Parent shall cause the Seller to, deliver to the Purchaser, against
payment as provided in Section 2.2 hereof, certificates representing the
Transferred Shares, duly endorsed in blank, or accompanied by stock powers duly
endorsed in blank, with all necessary transfer tax and other revenue stamps,
acquired at the Purchaser's expense, affixed thereto.
Section 2.4 Transfer Taxes. The Seller shall, and the Parent
shall cause the Seller to, pay all Taxes charged to grantors, transferors or
assignors under applicable Law, provided that the Purchaser shall pay any stock
transfer and stamp taxes which become payable in connection with the purchase of
the Transferred Shares hereunder.
Section 2.5 Tender of Class A Shares. (a) The Seller hereby
agrees, and the Parent agrees to cause the Seller, to tender validly (and not to
withdraw) pursuant to and in accordance with the terms of the Tender Offer, in a
timely manner for acceptance by the Purchaser in the Tender Offer, the
11,779,931 Class A Shares owned by the Seller on the date hereof (the "Existing
Class A Shares") and any Class A Shares that may be acquired by the Seller after
the date hereof and prior to the termination of this Agreement whether upon the
exercise of options, warrants or rights, the conversion or exchange of
convertible or exchangeable securities, or by means of purchase, dividend,
distribution or otherwise (such Class A Shares, together with the Existing Class
A Shares, are referred to herein as the "Seller's Class A Shares"). Each of the
Parent and the Seller hereby acknowledges and agrees that the Purchaser's
obligation to accept for payment and pay for Class A Shares tendered in the
Tender Offer, including the Seller's Class
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<PAGE> 8
A Shares, is subject to the terms and conditions of the Tender Offer. The
Purchaser agrees to use its reasonable best efforts to cause the depositary for
the Tender Offer to agree to use its reasonable best efforts to notify each
holder of Class A Shares tendered pursuant to the Tender Offer, if requested by
such holder, of any defect in the tender of such Class A Shares which could
result in such Class A Shares not being deemed validly tendered pursuant to the
Tender Offer.
(b) Each of the Parent and the Seller hereby agrees to permit
the Purchaser to publish and disclose, and hereby consents to any prior
publication and disclosure, in the Tender Offer Statement on Schedule 14D-1 with
respect to the Tender Offer, the Offer to Purchase and form of related letter of
transmittal as well as all other information and exhibits and any supplements or
amendments thereto (the "Tender Offer Documents") its identity and the Seller's
ownership of Class A Shares and the Class AL Shares, and, to the extent required
by the Securities Exchange Act of 1934, as amended, an accurate summary of the
material terms of the agreements, arrangements and understandings among the
Parent, the Seller and the Purchaser under this Agreement.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE PARENT AND THE SELLER
Section 3. Representations and Warranties of the Parent and
the Seller. In order to induce the Purchaser to enter into this Agreement and to
acquire the Transferred Shares, each of the Parent and the Seller makes the
following representations and warranties.
Section 3.1 Legal Status. The Parent is a duly organized and
validly existing corporation under the Laws of England and Wales. The Seller is
a duly organized and validly existing corporation in good standing under the
Laws of the State of Massachusetts.
Section 3.2 Power and Authority; Enforceability. Each of the
Parent and the Seller has full requisite legal capacity, power and authority to
execute, deliver and perform its obligations pursuant to this Agreement and to
consummate the transactions contemplated hereby and has taken all necessary
corporate action to authorize the execution, delivery and performance by the
Parent and the Seller of their respective obligations pursuant to this Agreement
and the consummation of the transactions contemplated hereby. This Agreement has
been duly authorized, executed and delivered by each of the Parent and the
Seller and constitutes a valid and legally binding obligation of each of the
Parent and the Seller enforceable against each of the Parent and the Seller in
accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar Laws of general applicability
relating to or affecting creditors' rights and to general equitable principles.
Section 3.3 Ownership of Transferred Shares. The Parent and
the Seller are the beneficial owners of, and prior to and on the Closing Date
the Seller will be the lawful record owner of, all of the Class AL Shares and
the Existing Class A Shares, in each case free and clear of all Liens. Other
than as specified in the preceding sentence, as of the date of this Agreement
none of the Parent, the Seller or any Affiliate of the Parent owns any shares of
capital stock of the Corporation. The Seller has full legal right, power and
authority to sell, assign, transfer and convey the Transferred Shares pursuant
to this Agreement. The delivery to the Purchaser of the
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<PAGE> 9
Transferred Shares against payment therefor pursuant to this Agreement and of
the Seller's Class A Shares pursuant to the Tender Offer against payment
therefore will, in each case, transfer to the Purchaser on the Closing Date good
and valid title thereto, free and clear of any Liens.
Section 3.4 No Conflicts; Consents of Third Parties;
Compliance with Laws. (a) The execution, delivery and performance by the Parent
and the Seller of this Agreement and the consummation of the purchase of the
Transferred Shares and the other transactions contemplated hereby will not (i)
conflict with the Memorandum and Articles of Association and By-Laws of the
Parent or the Articles of Organization or By-Laws of the Seller, (ii) conflict
with, or result in the breach or termination of, or constitute a default under,
any lease, charter, note, bond, mortgage, license, permit, indenture, contract,
agreement, commitment, arrangement or other instrument or obligation, or any
order, judgment, decree, injunction, regulation or ruling of any governmental
authority or regulatory organization of competent authority, domestic or
foreign, to which the Parent or the Seller is a party or by which the Parent or
the Seller or any of their respective properties or assets are bound, (iii)
constitute a violation by the Parent or the Seller of any Law applicable to the
Parent or the Seller or any of their respective properties or assets, or (iv)
result in the creation of any Lien upon the Transferred Shares, except in the
case of subclause (ii) above such conflicts, breaches, terminations and defaults
which would not prevent or substantially delay the consummation of the
transactions contemplated by this Agreement.
(b) No consent, approval, permit or authorization of, or
designation, declaration or filing with, any governmental authorities or third
parties is required on the part of the Parent or the Seller in connection with
the execution and delivery of this Agreement and the performance of the
transactions contemplated hereby.
Section 3.5 Broker's or Finder's Fees. No agent, broker,
person or firm acting on behalf of the Parent, the Seller or any of their
Affiliates is, or will be, entitled to any commission or broker's or finder's
fees from any of the parties hereto, other than the Parent, the Seller or their
Affiliates.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
Section 4. Representations and Warranties of the Purchaser. In
order to induce the Parent and the Seller to enter into this Agreement and to
sell the Transferred Shares, the Purchaser makes the following representations
and warranties.
Section 4.1 Legal Status. The Purchaser is a duly organized
and validly existing public company with limited liability under the laws of the
Netherlands.
Section 4.2 Power and Authority; Enforceability. The Purchaser
has full requisite legal capacity, power and authority to execute, deliver and
perform the terms and provisions of this Agreement and to consummate the
transactions contemplated hereby and has taken all necessary corporate action to
authorize the execution, delivery and performance by the Purchaser of this
Agreement and the consummation of the transactions contemplated hereby. This
Agreement
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has been duly authorized, executed and delivered by the Purchaser and
constitutes a valid and legally binding obligation of the Purchaser enforceable
against the Purchaser in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of
general applicability relating to or affecting creditor's rights and to general
equitable principles.
Section 4.3 No Conflicts. (a) Assuming the receipts of the
consents, approvals, permits, authorizations, designations or declarations, or
the making of the filings, specified in clause (b) below, the execution,
delivery and performance of this Agreement by the Purchaser and the performance
of the provisions regarding the Tender Offer will not (i) conflict with the
Articles of Association of the Purchaser, (ii) conflict with, result in the
breach or termination of, or constitute a default (or give rise to any third
party right of termination, cancellation, material modification or acceleration)
under, any lease, charter, note, bond, mortgage, license, indenture, contract,
agreement, commitment, arrangement or other instrument or obligation or any
order, judgment, decree, injunction, regulation or ruling of any governmental
authority or regulatory organization, domestic or foreign, to which the
Purchaser is a party or by which the Purchaser or any of its properties or
assets are bound, or (iii) constitute a violation by the Purchaser of any Law
applicable to the Purchaser any of its properties or assets.
(b) Except (i) for filings under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the "HSR Act"), (ii) as required
by the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder in connection with the Tender Offer, (iii) the "blue sky"
laws of various states, (iv) applicable Alcohol and Drug Laws and (v) applicable
local permit laws, rules and regulations pertaining to the operation of the
business of the Corporation and its subsidiaries, no consent, approval, permit,
or authorization of, or designation, declaration or filing with, any
governmental authorities or third parties is required on the part of the
Purchaser in connection with the execution and delivery of this Agreement and
the performance by the Purchaser of the transactions contemplated hereby.
Section 4.4 Broker's or Finder's Fees. Except for Merrill
Lynch, Pierce, Fenner & Smith Incorporated (whose fees and expenses will be paid
by the Purchaser), no agent, broker, person or firm acting on behalf of the
Purchaser or any Affiliate thereof is, or will be, entitled to any commission or
broker's or finder's fees from any of the parties hereto, or from any Person
controlling, controlled by or under common control with any of the parties
hereto, in connection with any of the transactions contemplated by this
Agreement.
Section 4.5 Available Funds. The Purchaser has or will have
available to it at the Closing all funds necessary to satisfy all of its
obligations hereunder and in connection with the transactions contemplated by
this Agreement.
Section 4.6 Securities Act. The Purchaser is acquiring the
Transferred Shares solely for the purpose of investment and not with a view to,
or for sale in connection with, any distribution thereof in violation of the
Securities Act of 1933, as amended (the "Securities Act"). The Purchaser
acknowledges that the Transferred Shares are not registered under the Securities
Act or any applicable state securities law, and that the Transferred Shares may
not be transferred
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<PAGE> 11
or sold except pursuant to the registration provisions of the Securities Act or
pursuant to an applicable exemption therefrom and pursuant to state securities
laws and regulations as applicable.
ARTICLE V
EXCLUSIVE DEALING, OTHER COVENANTS
Section 5.1 Exclusive Dealing. (a) The Parent, the Seller and
each of their respective officers, directors and employees shall, and shall
instruct their respective representatives, consultants, investment bankers,
attorneys, accountants, agents and advisors (collectively "Agents") to,
immediately cease any discussions or negotiations with any other parties that
may be ongoing with respect to any purchase of the Transferred Shares or any
Acquisition Proposal (as defined below). Neither the Parent nor the Seller shall
directly or indirectly, take (and neither the Parent nor the Seller shall
authorize or permit its Agents to so take) any action to (i) encourage, solicit
or initiate the making of any offer to purchase the Transferred Shares or any
Acquisition Proposal, (ii) enter into any agreement with respect to any offer to
purchase the Transferred Shares or any Acquisition Proposal, or (iii)
participate in any way in discussions or negotiations with, or furnish or
disclose any information to, any Person (other than the Purchaser) in connection
with, or take any other action to facilitate knowingly, or that such Person
reasonably should have known would facilitate, any inquiries or the making of
any proposal that constitutes, or may reasonably be expected to lead to, any
offer to purchase the Transferred Shares or any Acquisition Proposal.
"Acquisition Proposal" shall mean any inquiry, proposal or
offer from any Person (other than the Purchaser) relating to any direct or
indirect acquisition or purchase of all or any of the Class AL Shares, of a
substantial amount of assets of the Corporation or any of its subsidiaries or of
more than 10% of any class of equity securities of the Corporation or any of its
subsidiaries, any tender offer or exchange offer that if consummated would
result in any person beneficially owning more than 10% of any other class of
equity securities of the Corporation or any of its subsidiaries, any merger,
consolidation, business combination, sale of substantially all the assets,
recapitalization, liquidation, dissolution or similar transaction involving the
Corporation or any of its subsidiaries, other than the transactions contemplated
hereby, or any other transaction involving the Corporation or any of its
securities or assets the consummation of which could reasonably be expected to
impede, interfere with, prevent or materially delay the Tender Offer, the
acquisition of the Transferred Shares pursuant to this Agreement or the
acquisition of the Class AC Shares pursuant to the Class AC Stock Purchase
Agreement.
(b) In addition to the obligations of the Parent and the
Seller set forth in paragraph (a), on the date of receipt thereof, each of the
Parent and the Seller shall advise the Purchaser of any request for information
or of any offer to purchase the Transferred Shares or any Acquisition Proposal,
or any inquiry or proposal with respect to any offer to purchase the Transferred
Shares or any Acquisition Proposal, the material terms and conditions of such
request, offer or Acquisition Proposal and of any material changes thereto, and
the identity of the entity or person making any such inquiry or proposal.
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Section 5.2 Further Assurances. Each of the parties shall
execute, acknowledge, deliver and file, without further consideration, all such
additional documents and take such other actions as may be necessary or
reasonably requested by the other party to consummate or evidence the
transactions and fulfill the obligations contemplated by this Agreement.
Section 5.3 Resignations. On the Closing Date, the Seller
shall, and the Parent shall cause the Seller to, cause each Person who has been
elected by the Seller to the Board of Directors of the Corporation to resign
effective as of the Closing Date.
Section 5.4 Provisions Concerning Transferred Shares. Each of
the Parent and the Seller hereby agrees that during the period commencing on the
date hereof and continuing until the earlier of (i) the Closing Date or (ii) the
termination date set forth in Section 8.12 hereof, at any meeting of the holders
of capital stock of the Corporation, however called, or in connection with any
written consent of the holders of capital stock of the Corporation, the Seller
shall, and the Parent shall cause the Seller to, vote (or cause to be voted) the
Transferred Shares whether issued, heretofore owned or hereafter acquired,
except as otherwise agreed to in writing in advance by the Purchaser, against
the following actions: (A) any extraordinary corporate transaction, such as a
merger, consolidation or other business combination involving the Corporation or
its subsidiaries; (B) a sale, lease or transfer of a material amount of assets
of the Corporation or its subsidiaries, or a reorganization, recapitalization,
dissolution or liquidation of the Corporation or its subsidiaries; or (C) (1)
any change in a majority of the persons who constitute the Board of Directors of
the Corporation, (2) any change in the present capitalization of the Corporation
or any amendment of the Corporation's Certificate of Incorporation or By-Laws,
(3) any other material change in the Corporation's corporate structure or
business, or (4) any other action involving the Corporation or its subsidiaries
which is intended, or would reasonably be expected, to impede, interfere with,
prevent or materially delay the Tender Offer, the acquisition of the Transferred
Shares pursuant to this Agreement or the acquisition of the Class AC Shares
pursuant to the Class AC Stock Purchase Agreement. The Seller shall not enter
into any agreement or understanding with any Person the effect of which the
Seller knows or reasonably should have known would be to violate the provisions
and agreements contained in this Section 5.4.
Section 5.5 Restriction on Transfer, Proxies and
Non-Interference. Beginning on the date hereof and ending on the earlier of the
Closing Date or the termination date set forth in Section 8.12 hereof, neither
the Parent nor the Seller shall (i) directly or indirectly, offer for sale,
sell, transfer, tender, pledge, encumber, assign or otherwise dispose of, or
enter into any contract, option or other arrangement or understanding with
respect to or consent to the offer for sale, transfer, tender, pledge,
encumbrance, assignment or other disposition of, any of the Transferred Shares
or any of the Existing Class A Shares or any interest therein, (ii) except as
contemplated by this Agreement, grant any proxies or powers of attorney, deposit
any Transferred Shares or Existing Class A Shares into a voting trust or enter
into a voting agreement with respect to any Transferred Shares or Existing Class
A Shares, or (iii) take any action that would, to their knowledge, make any
representation or warranty of the Parent or the Seller contained herein untrue
or incorrect or have the effect of preventing or disabling the Parent or the
Seller from performing its obligations under this Agreement.
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Section 5.6 Changes in Shares. In the event of a stock
dividend or distribution, or any change in the capital stock of the Corporation
by reason of any stock dividend, split-up, recapitalization, combination,
exchange of shares or the like, the term "Transferred Shares" shall be deemed to
refer to and include the Transferred Shares as well as all such stock dividends
and distributions and any shares into which or for which any or all of the
Transferred Shares may be changed or exchanged and the Purchase Price shall be
appropriately and equitably adjusted. The Seller shall be entitled to receive
any cash dividend paid during the term of this Agreement by the Corporation on
the Transferred Shares until the Transferred Shares are purchased hereunder and
on the Seller's Class A Shares as and to the extent provided in the Tender Offer
Documents.
Section 5.7 Changes in Tender Offer. Without the consent of
the Parent and the Seller, the Purchaser shall not (a) reduce the number of
Class A Shares to be purchased in the Tender Offer, (b) reduce the Tender Offer
Price, (c) modify or add to the Tender Offer Conditions in a manner that is
materially adverse to the holders of Class A Shares or (d) change the form of
consideration payable in the Tender Offer.
Section 5.8 Tender Offer Conditions. If the Purchaser waives
any Tender Offer Condition for purposes of Section 6.5 hereof or the Tender
Offer, the Purchaser shall waive such condition with respect to the Tender Offer
or Section 6.5 hereof, as the case may be.
Section 5.9 Purchase of the Class A Shares and the Transferred
Shares. (a) The Purchaser agrees that if it purchases any Class A Shares validly
tendered pursuant to the Tender Offer and not withdrawn prior to the expiration
of the Tender Offer, it will waive all unsatisfied conditions to the Purchaser's
obligations set forth in Article VI hereof and will purchase the Transferred
Shares pursuant to this Agreement.
(b) The Purchaser agrees that if it purchases the Transferred
Shares pursuant to this Agreement, it will waive all unsatisfied Tender Offer
Conditions and will purchase any of the Seller's Class A Shares validly tendered
pursuant to the Tender Offer and not withdrawn prior to the expiration of the
Tender Offer.
ARTICLE VI
CONDITIONS TO THE PURCHASER'S OBLIGATIONS
Section 6. Conditions to the Purchaser's Obligations. The
obligation of the Purchaser to purchase the Transferred Shares on the Closing
Date is subject to the satisfaction, at or prior to the Closing, of the
following conditions:
Section 6.1 Truth of Representations and Warranties. (a) The
representations and warranties of the Parent and the Seller contained in this
Agreement shall be true and correct in all material respects on and as of the
Closing Date with the same effect as though such representations and warranties
had been made on and as of such date, and the Purchaser shall have received a
certificate signed by an executive officer of each of the Parent and the Seller,
dated the Closing Date, to such effect.
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Section 6.2 Performance of Agreements. All of the agreements
of the Parent and the Seller to be performed and all of the covenants of the
Parent and the Seller to be complied with prior to the Closing pursuant to the
terms of this Agreement shall have been duly performed or complied with, as
applicable, in all material respects and the Purchaser shall have received a
certificate signed by an executive officer of each of the Parent and the Seller,
dated the Closing Date, to such effect.
Section 6.3 Injunction. No preliminary or permanent injunction
or other order shall have been issued by any court or by any governmental or
regulatory agency, body or authority which prohibits the consummation of the
Tender Offer, the purchase of the Transferred Shares or any of the other
transactions contemplated by this Agreement and which is in effect at the
Closing Date, provided, however, that, in the case of a decree, injunction or
other order, each of the parties shall have used reasonable efforts to prevent
the entry of any such injunction or other order and to appeal as promptly as
possible any decree, injunction or other order that may be entered.
Section 6.4 Consents and Approvals. All governmental and
third-party consents, waivers and approvals, if any, specifically disclosed in
this Agreement or necessary to permit the consummation of the transactions
contemplated by this Agreement shall have been received. All time periods under
the HSR Act applicable to the purchase of the Class AC Shares under the Class AC
Stock Purchase Agreement and the purchase of the Transferred Shares under this
Agreement shall have expired or been terminated. No governmental or other
instrumentality or agency shall have required that, in exchange for approval of
the transactions contemplated by this Agreement, the Purchaser, the Corporation
or any of their respective Affiliates sell or otherwise dispose of, or hold
separate (through the establishment of a trust or otherwise) particular assets
or categories of assets, or businesses of the Purchaser, the Corporation or any
of their respective Affiliates or withdraw from doing business in a particular
jurisdiction or take any other action that, in the aggregate, in the sole
judgment of the Purchaser, would reasonably be expected to substantially impair
or substantially reduce the Purchaser's ability to control, direct or manage on
a day-to-day basis the business or affairs of the Corporation or to
substantially impair or substantially reduce the overall benefits expected, as
of the date hereof, to be realized by the Purchaser from the consummation of the
transactions contemplated by this Agreement or would have a material adverse
effect on the business, properties, assets, liabilities, condition (financial or
otherwise), prospects, operations or results of operations of the Purchaser and
its subsidiaries taken as a whole or the Corporation and its subsidiaries taken
as a whole.
Section 6.5 Tender Offer Conditions. At any time on or after
the date hereof and at or before the time of payment for the Transferred Shares
hereunder, none of the Tender Offer Conditions shall have occurred.
Section 6.6 Resignations. Each Person who has been appointed
by the Seller to the Board of Directors of the Corporation (each a "Director")
shall have delivered to the Purchaser their written resignation from such
position effective as of the Closing Date or the Purchaser shall have received
written evidence satisfactory to it that any Director who has not
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delivered such written resignation has been removed from such position effective
as of the Closing Date.
Section 6.7 Class AC Stock Purchase Agreement. The purchase of
all of the Class AC Shares pursuant to the terms of the Class AC Stock Purchase
Agreement shall be consummated simultaneously with the purchase of the
Transferred Shares pursuant to this Agreement.
Section 6.8 Tender Offer. The purchase of any Class A Shares
tendered pursuant to the Tender Offer and not withdrawn prior to the expiration
of the Tender Offer shall be consummated simultaneously with the purchase of the
Transferred Shares pursuant to this Agreement.
ARTICLE VII
CONDITIONS TO THE OBLIGATIONS OF THE PARENT AND THE SELLER
Section 7. Conditions to the Obligations of the Parent and the
Seller. The obligation of the Seller to, and of the Parent to cause the Seller
to, sell the Transferred Shares on the Closing Date is subject to satisfaction,
at or prior to such date, of the following conditions:
Section 7.1 Truth of Representations and Warranties. The
representations and warranties of the Purchaser contained in this Agreement
shall be true and correct in all respects on and as of the Closing Date with the
same effect as though such representations and warranties had been made on and
as of such date, and the Parent and the Seller shall have received a certificate
signed by an authorized officer of the Purchaser, dated the Closing Date, to
such effect.
Section 7.2 Performance of Agreements. All of the agreements
of the Purchaser to be performed and all of the covenants of the Purchaser to be
complied with prior to the Closing pursuant to the terms of this Agreement shall
have been duly performed or complied with, as applicable, and the Parent and the
Seller shall have received a certificate signed by an authorized officer of the
Purchaser, dated the Closing Date, to such effect.
Section 7.3 Injunction. No preliminary or permanent injunction
or other order shall have been issued by any court or by any governmental or
regulatory agency, body or authority of competent jurisdiction which prohibits
the consummation of the Tender Offer, the purchase of the Transferred Shares or
any of the other transactions contemplated by this Agreement and which is in
effect at the Closing Date, provided, however, that, in the case of a decree,
injunction or other order, each of the parties shall have used reasonable
efforts to prevent the entry of any such injunction or other order and to appeal
as promptly as possible any decree, injunction or other order that may be
entered.
Section 7.4 Tender Offer. The purchase of any Class A Shares
tendered pursuant to the Tender Offer and not withdrawn prior to the expiration
of the Tender Offer shall be consummated simultaneously with the purchase of the
Transferred Shares pursuant to this Agreement.
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Section 7.5 Class AC Stock Purchase Agreement. The purchase of
all of the Class AC Shares pursuant to the terms of the Class AC Stock Purchase
Agreement shall be consummated simultaneously with the purchase of the
Transferred Shares pursuant to this Agreement.
ARTICLE VIII
MISCELLANEOUS
Section 8.1 Representations and Warranties. The respective
representations and warranties of the Parent, the Seller and the Purchaser
contained herein or in any certificates or other documents delivered prior to or
at the Closing shall not be deemed waived or otherwise affected by any
investigation made by any party. Each and every such representation and warranty
shall serve solely as a condition to closing and shall expire with, and be
terminated and extinguished by, the Closing and thereafter none of the Parent,
the Seller, the Purchaser nor any of their respective officers, directors,
employees, representatives, consultants, investment bankers, attorneys,
accountants or other agents shall be under or subject to any liability
whatsoever with respect to any such representation or warranty. This Section 8.1
shall have no effect upon any other obligation of the parties hereto.
Section 8.2 Expenses. The parties hereto shall pay all of
their own expenses relating to the transactions contemplated by this Agreement,
including, without limitation, the fees and expenses of their respective counsel
and financial advisers.
Section 8.3 Governing Law. This Agreement shall be construed
in accordance with, and be governed by, the Laws of the State of Delaware. Each
of the parties hereby irrevocably and unconditionally:
(a) submits itself in any legal action or proceeding relating
to this Agreement, or for recognition and enforcement of any judgment
in respect thereof, to the general jurisdiction of the courts of the
State of Delaware, the federal courts of the United States of America
located in Delaware and appellate courts from any thereof;
(b) consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter
have to the venue of any such action or proceeding in any such court or
that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same;
(c) agrees that service of process in any such action or
proceeding will be in accordance with the laws of the State of Delaware
and agrees to appoint an agent for service of process in the State of
Delaware within 10 business days of the date hereof;
(d) agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law; and
(e) waives the right to require a trial by jury with respect
to any such action or proceeding.
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Section 8.4 Headings. The headings in this Agreement are
intended solely for convenience of reference and shall be given no effect in the
construction or interpretation of this Agreement.
Section 8.5 Publicity. Except as required by applicable U.S.
federal securities law or the rules and regulations of any U.S. or foreign
securities exchange upon which the securities of the parties hereto are listed
for trading, or as otherwise provided for in this Agreement, no announcement or
other publicity relating to this Agreement or the Corporation shall be made or
issued directly or indirectly by or on behalf of any party hereto without the
prior approval of the other parties hereto (which shall not be unreasonably
withheld).
Section 8.6 Notices. All notices, requests, demands and other
communications required or permitted to be given hereunder shall be in writing
and shall be deemed to have been duly given when delivered in person, or when
sent by telex or telecopy or other facsimile transmission (with receipt
confirmed), or when sent via express delivery service and addressed as follows
(or at such other addresses as the parties may designate by written notice in
the manner aforesaid):
If to the Purchaser:
Koninklijke Ahold N.V.
Albert Heijnweg 1
1507 EH Zaandam
The Netherlands
Telecopier: 011 31 75 659 83 66
Attention: Paul P.J. Butzelaar, Esq.
with a copy to:
White & Case LLP
1155 Avenue of the Americas
New York, New York 10036
Telecopier: (212) 354-8113
Attention: Maureen Brundage, Esq.
If to the Parent or the Seller:
J Sainsbury plc
Stamford House
Stamford Street
London SE1 911
England
Telecopier: 011 44 171 695 7610
Attention: Nigel F. Matthews,
Corporate Secretary
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<PAGE> 18
with a copy to:
Sullivan & Cromwell
125 Broad Street
New York, New York 10004
Telecopier: (212) 558-3588
Attention: Neil T. Anderson, Esq.
or to such other person as shall be designated in writing by any such party, and
such notice or communication shall be deemed to have been given as of the date
so delivered, sent by telecopier or mailed.
Section 8.7 Binding Effect; Benefit; Assignment. This
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective successors and permitted assigns, but neither this
Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by any of the parties hereto without the prior written consent of the
other parties. Notwithstanding anything in this Section 8.6 to the contrary, it
is expressly understood and agreed that the Purchaser may assign this Agreement
and its rights, interests and obligations hereunder to any wholly-owned
subsidiary of the Purchaser; provided, however, that no such assignment shall
relieve the Purchaser of any of its obligations hereunder. Nothing in this
Agreement, expressed or implied, is intended to confer on any Person other than
the parties hereto or their respective successors and permitted assigns, any
rights, remedies, obligations or liabilities under or by reason of this
Agreement.
Section 8.8 Best Efforts. Subject to the terms and conditions
provided herein, each of the Purchaser, the Parent and the Seller shall, with
respect to matters within their respective control, cooperate and use their
respective best efforts to, (i) take, or cause to be taken, all appropriate
action, and do, or cause to be done, all reasonable things necessary and proper
under applicable law to consummate the transactions contemplated hereby as
promptly as practicable, (ii) obtain from any governmental authority, regulatory
organization or other instrumentality or agency or any other third party any
licenses, permits, consents, waivers, approvals, authorizations, qualifications,
or orders required to be obtained or made by the Purchaser, the Parent, the
Seller or any of their subsidiaries in connection with the authorization,
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, and (iii) as promptly as practicable, make, or
cause to be made, all filings and other submissions necessary, proper or
advisable with respect to this Agreement and the transactions contemplated
hereby under any applicable laws or regulations. The Purchaser, the Parent and
the Seller shall cooperate with each other in connection with the making of all
such filings, including providing copies of all such documents to the non-filing
party and its advisors prior to filing and, if requested, to accept all
reasonable additions, deletions or changes suggested in connection therewith.
The Purchaser, the Parent and the Seller shall use their respective best efforts
to furnish to each other all information required for any application or other
filing to be made pursuant to the rules and regulations of any applicable law in
connection with the transactions contemplated by this Agreement. Notwithstanding
anything to the contrary in this Section 8.7, none of the Purchaser, the Parent,
the Seller, the Corporation or any of their respective
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<PAGE> 19
subsidiaries shall be required to sell or otherwise dispose of, or hold separate
(through the establishment of a trust or otherwise) particular assets or
categories of assets, or business of the Purchaser, the Seller, the Parent, the
Corporation or any of their affiliates or withdraw from doing business in a
particular jurisdiction or take any other action that, in the aggregate, in the
sole judgment of the Purchaser, would reasonably be expected to substantially
impair or substantially reduce the Purchaser's ability to control, direct or
manage on a day-to-day basis the business or affairs of the Corporation or to
substantially impair or substantially reduce the overall benefits expected, as
of the date hereof, to be realized by the Purchaser from the consummation of the
transactions contemplated by this Agreement or would have a material adverse
effect on the business, properties, assets, liabilities, condition (financial or
otherwise), prospects, operations or results of operations of the Purchaser and
its subsidiaries taken as a whole or the Corporation and its subsidiaries taken
as a whole.
Section 8.9 Counterparts. This Agreement may be executed in
two or more counterparts, each of which shall be deemed an original, but all of
which shall constitute the same Agreement.
Section 8.10 Entire Agreement. This Agreement, including the
other documents referred to herein which form a part hereof, contains the entire
understanding of the parties hereto with respect to the subject matter contained
herein and therein. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.
Section 8.11 Amendments. This Agreement may not be changed,
amended, waived, or modified orally, but only by an agreement in writing signed
by the Purchaser, the Parent and the Seller.
Section 8.12 Severability. If any term, provision, covenant or
restriction contained in this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void, unenforceable or against
its regulatory policy, the remainder of the terms, provisions, covenants and
restrictions contained in this Agreement shall remain in full force and effect
and shall in no way be affected, impaired or invalidated.
Section 8.13 Termination of Agreement. All parties hereto
agree to use their best efforts to fulfill the requirements of Articles VI and
VII as soon as practicable. If any precondition to the completion of the
transactions contemplated hereby is not fulfilled on or prior to December 31,
1998, then any party may terminate this Agreement and thereafter this Agreement
shall become void and have no effect, without any liability hereunder of either
party to the other party except for any breach of this Agreement. This Agreement
shall terminate and become void and have no effect, without any liability
hereunder of either party to the other party except for any breach of this
Agreement, if the Class AC Stock Purchase Agreement or the Tender Offer shall be
terminated pursuant to their respective terms prior to the purchase of any
Transferred Shares hereunder.
Section 8.14 Specific Performance. Each of the parties hereto
recognizes and acknowledges that a breach by it of any covenants or agreements
contained in this Agreement will cause the other party to sustain damages for
which it would not have an adequate remedy at law
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<PAGE> 20
for money damages, and therefore each of the parties hereto agrees that in the
event of any such breach the aggrieved party shall be entitled to the remedy of
specific performance of such covenants and agreements and injunctive and other
equitable relief in addition to any other remedy to which it may be entitled, at
law or in equity.
Section 8.15 Remedies Cumulative. All rights, powers and
remedies provided under this Agreement or otherwise available in respect hereof
at law or in equity shall be cumulative and not alternative, and the exercise of
any thereof by any party shall not preclude the simultaneous or later exercise
of any other such right, power or remedy by such party.
Section 8.16 No Waiver. The failure of any party hereto to
exercise any right, power or remedy provided under this Agreement or otherwise
available in respect hereof at law or in equity, or to insist upon compliance by
any other party hereto with its obligations hereunder, and any custom or
practice of the parties at variance with the terms hereof shall not constitute a
waiver by such party of its right to exercise any such or other right, power or
remedy or to demand such compliance.
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<PAGE> 21
IN WITNESS WHEREOF, each of the Purchaser, the Parent and the
Seller has caused its corporate name to be hereunto subscribed by its officer
thereunto duly authorized all as of the day and year first above written.
J SAINSBURY PLC
By: /s/ DAVID M. BREMNER
-----------------------
Name: David M. Bremner
Title: Deputy Group Chief Executive
JS MASS. SECURITIES CORP.
By: /s/ SANDRA J. DORAN
-----------------------
Name: Sandra J. Doran
Title: President
KONINKLIJKE AHOLD N.V.
By: /s/ Robert Zwartendijk
-----------------------
Name: R. Zwartendijk
Title: Executive Vice President
