Loblaw Companies Limited announces Dividend Reinvestment Plan

    BRAMPTON, ON, May 6 /CNW/ - Loblaw Companies Limited (TSX: L) today
announced the introduction of a Dividend Reinvestment Plan (the "Plan") that
will enable eligible holders of common shares to automatically reinvest their
regular quarterly dividends in additional common shares of the Company. No
commissions, service charges or brokerage fees will be payable by Plan
participants in connection with their purchase of shares under the Plan. The
Plan is subject to regulatory approvals.
    Under the current Plan, dividends by participating shareholders will be
reinvested in additional common shares issued from treasury at a three percent
discount to the average market price on the applicable dividend payment date.
The average market price for shares issued from treasury is the
volume-weighted average trading price of the Company's common shares on the
Toronto Stock Exchange for the five trading days immediately preceding the
applicable dividend payment date.
    In announcing the Plan, Galen G. Weston, Executive Chairman of the
Company, said: "Conserving cash and increasing flexibility are priorities of
the Company in view of the current economic environment. The Board has
concluded that the Plan is a cost effective way to raise equity and at the
same time enables shareholders to purchase additional shares on an attractive
basis. We are targeting to raise approximately $300 million of equity through
this program. The Company's majority shareholder, George Weston Limited, has
confirmed its current intention to participate in the Plan."
    The full text of the Plan and an enrollment form will be available on the
website of the Company's Transfer Agent, Computershare Trust Company of
Canada, at www.computershare.com.
    Shareholders wishing to participate in the Plan may do so commencing in
the second quarter of 2009. To do so, registered shareholders must obtain and
sign an enrollment form and return it to the Company's Transfer Agent at the
following address prior to the close of business on June 10, 2009:

    Computershare Trust Company of Canada
    100 University Avenue, 9th Floor
    Toronto, Ontario
    M5J 2Y1

    Beneficial shareholders who hold their shares through a nominee, such as
a broker or investment dealer, and who wish to participate in the Plan should
contact their nominee to enquire about enrollment.
    Before participating, shareholders are advised to read the complete text
of the Plan and to consult their advisors regarding potential tax
implications. At present, only Canadian residents may participate.

    About Loblaw Companies Limited

    Loblaw Companies Limited, a subsidiary of George Weston Limited, is
Canada's largest food distributor and a leading provider of drugstore, general
merchandise and financial products and services. Loblaw is one of the largest
private sector employers in Canada. With more than 1,000 corporate and
franchised stores from coast to coast, Loblaw and its franchisees employ over
139,000 full-time and part-time employees. Through its portfolio of store
formats, Loblaw is committed to providing Canadians with a wide, growing and
successful range of products and services to meet the everyday household
demands of Canadian consumers. Loblaw is known for the quality, innovation and
value of its food offering. It offers Canada's strongest control (private)
label program, including the unique President's Choice(R) no name(R) and Joe
Fresh Style(R) brands. In addition, the Company makes available to consumers
President's Choice financial services and offers the PC points loyalty

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction. The common
shares of the Company have not been and will not be registered under the
United States Securities Act of 1933, as amended, or under any state
securities laws, and may not be offered, sold, directly or indirectly, or
delivered within the United States of America and its territories and
possessions or to, or for the account or benefit of, United States persons
except in certain transactions exempt from the registration requirements of
such Act. This release does not constitute an offer to sell or a solicitation
to buy such securities in the United States.
    This news release includes forward-looking statements, including the
amount of equity expected to be raised through the Plan. These statements
reflect the Company's current expectations concerning future results and
events and are subject to a number of risks and uncertainties that could cause
actual results and events to differ materially from current expectations,
including the possibility that the Company's plans and objectives will not be
achieved. These risks and uncertainties include but are not limited to: the
level of participation in the Plan by the Company's shareholders, which is not
within the Company's control, the amount of quarterly dividends, which is in
the discretion of the Company's Board of Directors and is subject to a number
of factors, and failure to obtain the required regulatory approvals. The
assumptions used in making these forward looking statements include that the
Company's majority shareholder George Weston Limited participates in the Plan
and that the proportion of other shareholders participating in the Plan is
comparable to that experienced in similar plans, and that dividends continue
to be paid at current levels. Additional risks are discussed in the forward
looking statements disclaimer found on page 2 of the 2008 Annual Report -
Financial Review and the Risks and Risk Management section of the Management's
Discussion and Analysis on pages 18 to 26 of the Annual Report - Financial
Review and also the 2009 First Quarter Interim Report. Other risks and
uncertainties not presently known to the Company or that the Company presently
believes are not material could also cause actual results or events to differ
materially from those expressed in the forward-looking statements. Readers are
cautioned not to put undue reliance on these forward looking statements which
reflect the Company's expectations only as of the date of this news release.
The Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.

For further information:

For further information: Inge van den Berg, Vice President, Public
Affairs & Investor Relations, (905) 459-2500, investor@loblaw.ca

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