Apparently, George Weston Limited has taken it upon itself to spark economic activity as the Company has announced that it will pay a special one-time common share dividend of $1 billion, representing $7.75 per common share, on January 25, 2011 to all common shareholders.
"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 W. Galen Weston, Chairman and President of the Corporation.
Weston, who will be featured in the Business Review Canada January magazine story on Canada’s billionaires, can certainly afford the de facto stimulus offering.
"Capital markets have come through some very turbulent times and the Corporation took a conservative position holding excess cash,” said Weston.
“Now with increased stability in the capital markets and our strong balance sheet, the directors felt that return of capital was appropriate. At the same time, we are preserving sufficient financial flexibility to meet the Corporation's ongoing operational and capital requirements and to pursue growth opportunities."
This dividend is designated as an "eligible" dividend for the purposes of the Income Tax Act (Canada) and any similar provincial and territorial legislation.
Founded in 1882, George Weston Limited, through its operating subsidiaries Weston Foods and Loblaw, constitutes one of North America's largest food processing and distribution groups.
Loblaw is Canada's largest food distributor and a leading provider of general merchandise, drugstore and financial products and services.
Source: George Weston Limited
"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 W. Galen Weston, Chairman and President of the Corporation.
Weston, who will be featured in the Business Review Canada January magazine story on Canada’s billionaires, can certainly afford the de facto stimulus offering.
"Capital markets have come through some very turbulent times and the Corporation took a conservative position holding excess cash,” said Weston.
“Now with increased stability in the capital markets and our strong balance sheet, the directors felt that return of capital was appropriate. At the same time, we are preserving sufficient financial flexibility to meet the Corporation's ongoing operational and capital requirements and to pursue growth opportunities."
This dividend is designated as an "eligible" dividend for the purposes of the Income Tax Act (Canada) and any similar provincial and territorial legislation.
Founded in 1882, George Weston Limited, through its operating subsidiaries Weston Foods and Loblaw, constitutes one of North America's largest food processing and distribution groups.
Loblaw is Canada's largest food distributor and a leading provider of general merchandise, drugstore and financial products and services.
Source: George Weston Limited
