/NOT FOR DISTRIBUTION IN THE U.S.A. OR OVER U.S. WIRE SERVICES/
MISSISSAUGA, ON, March 27, 2013 /CNW Telbec/ - KP Tissue Inc. ("KPT")
(TSX: KPT) announced today that the Board of Directors has declared an
initial dividend of $0.217 per common share, payable on April 15, 2013
to shareholders of record at the close of business on April 8, 2013,
subject to applicable law.
The dividends paid are designated as "eligible" dividends for the
purposes of the Income Tax Act (Canada) and any similar provincial and
The dividend is being declared in connection with the declaration of a
corresponding quarterly distribution by Kruger Products L.P. ("KPLP")
in which KP Tissue holds a limited partnership interest. KPT has
adopted a policy to declare quarterly dividends in order to distribute
the amount of all regular quarterly distributions received from KPLP
(other than distributions in respect of tax) to holders of KPT common
shares, subject to the requirements of applicable corporate law.
Dividend Reinvestment Plan
The Corporation has adopted a Dividend Reinvestment Plan ("DRIP") under
which eligible shareholders may elect to have their cash dividends
reinvested in additional common shares of KPT. Under the Plan, the
Corporation will automatically reinvest all cash dividends of KPT in
newly issued Common Shares at a price per Common Share equal to 97% of
the 5-day weighted average trading price of the Common Shares prior to
the dividend payment date.
The Common Shares purchased under the Plan will be acquired by
shareholders without the payment of any brokerage fees or other
acquisition costs. Only Canadian shareholders are eligible to
participate in the DRIP and the DRIP is subject to additional
limitations and restrictions. Interested shareholders are encouraged to
review the full text of the DRIP, available on KPT's website at www.kptissueinc.com. Participation in the DRIP does not relieve shareholders of any
liability for taxes that may be payable in connection with dividends
that are reinvested in new Common Shares under the DRIP. Shareholders
should consult their tax advisors concerning the tax implications of
their participation in the DRIP having regard to their particular
Participants in the depository service of CDS Clearing and Depositary
Services Inc. who wish to enroll in the DRIP on behalf of shareholders
must elect online via CDSX prior to 5:00 p.m. (Toronto Time) on April
8, 2013, the dividend record date. Shareholders who wish to participate
in the DRIP should contact their broker, financial institution, or
other nominee through which their Common Shares are held to determine
their eligibility and provide appropriate enrolment instructions, and
to ensure any deadlines or other requirements that such broker,
financial institution, or nominee may impose or be subject to are met.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction. The
securities offered have not been and will not be registered under the United States Securities Act of 1993, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
About KP Tissue Inc.
KP Tissue Inc. (KPT) was created to acquire, and its business is limited
to holding, a limited partnership interest in KPLP. For more
information visit www.kptissueinc.com.
About Kruger Products L.P.
Kruger Products L.P. is Canada's leading manufacturer of quality tissue
products for household, industrial and commercial use. Kruger Products
L.P. serves the Canadian consumer market with such well-known brands as
Cashmere®, Purex®, SpongeTowels®, Scotties®' and White Swan®. In the
U.S., Kruger Products L.P. manufactures the White Cloud® brand, as well
as many private label products. Kruger Products L.P. has approximately
2,300 employees across North America and operates five FSC® CoC-
certified mills, four of which are located in Canada and one in the
US. For more information visit www.krugerproducts.ca.
SOURCE: KP Tissue Inc.
For further information:
General Counsel and Corporate Secretary
KP Tissue Inc.
Director of Investor Relations
KP Tissue Inc.