Delhaize America to purchase debt

BRUSSELS, Belgium Delhaize Group announced Wednesday that Delhaize America, its wholly owned subsidiary, launched a tender offer to purchase for cash up to $1.1 billion principal amount of its debt. The tender offer will be financed by the sale of new Delhaize Group debt securities.

According to Delhaize Group the tender offer is subject to a withdrawal deadline on June 12 and will expire on June 26, unless extended.

Delhaize Group said that beginning in 2008, the transaction will have a positive impact on its net earnings, and it expects to incur a one-time charge in the second quarter of 2007 because the outstanding debt will be purchased above its carrying value.