To: Business Editor
For immediate release
13th September 1999 - Dairy Farm International Holdings Limited today announced its intention to pay a Special Dividend to shareholders of US?.65 per existing Ordinary Share amounting to approximately US$178 million in aggregate. The payment will be combined with a related nine for ten consolidation of Dairy Farm's share capital.
The Board of Dairy Farm considers that this return of capital will enhance Dairy Farm's capital structure and improve future shareholder returns, while leaving the Group with sufficient financial flexibility to continue its comprehensive capital investment programme and to pursue attractive expansion opportunities as and when they arise.
The payment of the Special Dividend, which has been recommended by the Board, will be made to all shareholders on the register of members at the close of business on Friday, 8th October 1999 (the "Record Date").
The consolidation of every ten existing Ordinary Shares of US? each into nine new Ordinary Shares of US? 5/9 each reflects the approximate proportion of Dairy Farm's market capitalisation being returned to shareholders. The net effect will be to reduce by some 10 per cent the market capitalisation of Dairy Farm through the payment of the Special Dividend and the consolidation of the share capital. It is intended that the consolidation will take place immediately after the close of business on the Record Date.
The purpose of the consolidation is to provide comparability in earnings per share and share prices with prior financial periods. Subject to normal market movements, the market price of each new Ordinary Share will be approximately the same as the market price of each existing Ordinary Share.
In addition to the Special Dividend, the Board intends to pay an Interim Dividend in accordance with normal practice, and both will be paid on Tuesday, 23rd November 1999. Ordinary Shares will be marked ex-Special Dividend and ex-Interim Dividend in Singapore on Monday, 4th October 1999 and in London on Monday, 11th October 1999.
The Special Dividend and share consolidation will be subject to the approval of shareholders at a Special General Meeting to be held on Thursday, 30th September 1999.
A circular will be posted to shareholders on 15th September 1999 containing full details of the proposals and a notice of the Special General Meeting.
Dairy Farm International is a leading food and drugstore retailer in the Asia-Pacific Region. At 30th June 1999, the Group and its associates operated 1,926 outlets, principally supermarkets, convenience stores and drugstores, employed some 72,500 people in nine countries and had 1998 sales of US$6.6 billion.
For further information, please contact:
| Dairy Farm Management Services Limited | |
| Ronald J Floto | (852) 2299 1881 (office) |
| Ian Durant | (852) 2299 1896 (office) email: idurant@dairy-farm.com.hk |
| Forrest International Limited | |
| Bob Fienberg | (852) 9408 6599 (mobile) |
| Sue Gourlay | (852) 2501 7936 (office) email: fienberg@forrestintl.com.hk |
Full text of this and other Group announcements can be accessed through the Internet at "http://www.irasia.com/listco/sg/dfi".
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