The Board of Directors of Kraft Foods Group, Inc. declared last week a regular quarterly dividend of $0.55 per share of common stock, payable on July 31, 2015, to shareholders of record on July 27, 2015, provided that the company’s proposed merger with H.J. Heinz Holding Corporation (Heinz) does not close on or before July 27, 2015.
If the merger closes on or before July 27, 2015, in lieu of Kraft paying its dividend announced today, the combined company – The Kraft Heinz Company – intends to declare and pay as soon as practicable following the closing of the merger and subject to the approval of its board of directors, a regular quarterly dividend of $0.55 per share of common stock of The Kraft Heinz Company to all shareholders of record of The Kraft Heinz Company as of a record date shortly after the date that the merger is completed.
Pursuant to the terms of the merger agreement between Kraft and Heinz, the Board of Directors of Kraft also declared a special cash dividend in the amount of $16.50 per share of common stock, conditioned upon the closing of the proposed merger, payable to Kraft shareholders of record immediately prior to the effective time of the merger.
As the special cash dividend is only being paid if the merger with Heinz closes, Kraft shareholders will not receive the special cash dividend unless and until the merger closes.
