George Weston Ltd, Canada’s largest food processor, has announced it will pay a one-time common share dividend of C$1bn (US$993.4m).
The pay-out represents C$7.74751 per common share, to be paid on 25 January to all common shareholders of record at the close of business on 18 January 2011.
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“The corporation’s track record of solid operating performance, combined with significant cash balances and ample liquidity to grow the business, provides the corporation with the opportunity to reward shareholders with a return in excess of our normal dividend,” said Galen Weston, chairman and president of George Weston.
He added: “Capital markets have come through some very turbulent times and the corporation took a conservative position holding excess cash. Now with increased stability in the capital markets and our strong balance sheet, the directors felt that a return of capital was appropriate.”
The Canadian food manufacturer and retailer had built up a sizeable war chest by selling off various divisions within its business, including the 2008 sale of Neilson dairy unit to Saputo for C$465m and a $921m gain from the sale of its US bakeries business to Grupo Bimbo last year.
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Speculation had focused on the possibility that the group could use its cash stockpile to take its supermarket arm Loblaw private, expand its grocery operations or paying a special dividend to shareholders.
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By GlobalDataThis year, George Weston has made two acquisitions, Keystone Bakeries and ACE Bakery.
