Acquisition

23rd Sep 2005 18:33

Somerfield PLC23 September 2005 FOR IMMEDIATE RELEASE 23 September 2005 Somerfield plc Acquisition of Stores Somerfield plc ("Somerfield") announces that it has unconditionally agreed toacquire five freehold Safeway forecourt stores from Safeway Stores Limited("Safeway"). The stores were part of the BP and Safeway Partnership and arebeing acquired following the exercise by BP of its pre-emption rights in favourof Somerfield under the original partnership dissolution agreement with Safeway.BP will continue to supply fuel to the forecourts which will retain the BPbranding. The sites are to be acquired for a cash consideration of £18.1 million, payableon completion. The consideration will be funded as to £11.3 million from TheWilliam Pears Group who will in return acquire the freeholds to the propertiesand lease the stores to Somerfield. The balance of the consideration is to befunded by Somerfield. Somerfield will also acquire stock on completion at anestimated cost of approximately £0.6million. The value of the gross assetsattributable to the five forecourt stores was £8.6 million at January 30 2005. Commenting on the forecourt acquisitions, Steve Back, Chief Executive said: "The forecourt sites are complementary to our existing forecourt conveniencestore network and are further evidence of our ambition to grow that part of ourbusiness." Separately, Somerfield also confirms its agreement, in an unrelated transaction,to acquire two further leasehold stores from Wm Morrisons Supermarkets plc (theparent company of Safeway Stores Limited), together with the freeholddevelopment site at Filey, for a consideration of £2.1m, payable in cash oncompletion. END For further information: Cardew GroupAnthony Cardew/ Sofia Rehman T: 020 7930 0777 This information is provided by RNS The company news service from the London Stock Exchange

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