ST. CATHARINES, ON, Oct. 31, 2012 /CNW/ - The Board of Directors of Algoma Central Corporation has today authorized payment of a quarterly cash dividend to shareholders of $0.60 per common share and a stock dividend of nine common shares for each common share held. The effect of the stock dividend is substantially the same as a ten-for-one stock split.
The Board of Directors has authorized payment of a quarterly cash dividend to shareholders of $0.60 per common share. The dividend is payable on December 3, 2012 to shareholders of record on November 19, 2012.
Stock Split by Dividend and "Due Bill" Trading
The Board of Directors has authorized a split of the common shares of Algoma Central Corporation by way a stock dividend payable on common shares. The stock dividend is payable on December 14, 2012 to shareholders of record on December 7, 2012.
Starting on December 5, 2012 and until December 13, 2012 inclusive, the common shares will trade on a "due bill" basis. Accordingly, ex-dividend trading in the common shares will commence on the TSX on December 17, 2012. Following payment of this stock dividend, the Corporation will have approximately 38.9 million common shares outstanding.
Each "due bill" will entitle the holder to receive nine common shares. The effect of this stock dividend is substantially the same as a ten-for-one share split. The conversion price under the Corporation's convertible debentures will be adjusted to reflect the issuance of additional common shares due to the declaration of the stock split.
The stock split will have no material tax consequences in Canada and will not dilute shareholders' equity.
About Algoma Central Corporation
Algoma Central Corporation owns and operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including 19 self-unloading dry-bulk carriers, seven gearless dry bulk carriers and seven product tankers. Algoma also has interests in ocean dry-bulk and product tanker vessels operating in international markets. Algoma owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.
A recently published economic impact study, commissioned by Marine Delivers, demonstrates the significant role that the Great Lakes / Seaway system plays in supporting the Canadian and U.S. economies. Some 227,000 jobs and $35 billion in economic activity are supported by the movement of goods within the Great Lakes / Seaway waterway. For more information, including access to the full text of the economic impact study, please consult the www.marinedelivers.com website.
SOURCE: Algoma Central Corporation
For further information:
Greg D. Wight, FCA
President and Chief Executive Officer
Peter D. Winkley, CA
Vice President, Finance and Chief Financial Officer