TORONTO, Dec. 15 /CNW/ - George Weston Limited ("Weston") (TSX: WN)
announced today that it will pay a special one-time common share
dividend of $1 billion, representing $7.74751 per common share, on
January 25, 2011 to all common shareholders of record at the close of
business on January 18, 2011.
"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.
Mr. Weston 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. 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
About George Weston Limited
George Weston Limited is a Canadian public company founded in 1882 and
through its operating subsidiaries constitutes one of North America's
largest food processing and distribution groups. Weston has two
reportable operating segments: Weston Foods and Loblaw, which is
operated by Loblaw Companies Limited. The Weston Foods operating
segment is primarily engaged in the baking industry within North
America. Loblaw is Canada's largest food distributor and a leading
provider of general merchandise, drugstore and financial products and
Caution concerning forward-looking statements
Certain statements made in this news release, including but not limited
to, statements relating to the Corporation's expected future financial
condition, operating and financial performance, liquidity and capital
requirements and growth prospects, and other statements constitute
forward looking statements. These forward looking statements are not
historical facts but reflect the Corporation's current expectations
concerning future results and events. As a result, these statements
are not guarantees of future performance and are subject to certain
risks and uncertainties.
These forward looking statements are based on current expectations,
estimates and projections about the Corporation and the industries in
which it operates, and are subject to known and unknown risks and
uncertainties that could cause the actual results, performance or
achievements expressed or implied by such forward looking statements.
Such risks and uncertainties include those described in the
Corporation's 2009 Annual Report and quarterly interim reports,
including the sections entitled "Forward Looking Statements". Readers
are cautioned not to place undue reliance on these forward looking
statements as there can be no assurances that the plans, objectives,
initiatives or expectations upon which they are based will occur.
SOURCE George Weston Limited
For further information: For further information:
Geoffrey H. Wilson
Senior Vice President, Financial Services and Investor Relations