Kraft Declares Regular Quarterly Dividend, Conditional Special Cash Dividend

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The FINANCIAL — Kraft Foods Group, Inc. on June 22 declared a regular quarterly dividend of $0.55 per share, payable on July 31 to shareholders of record on July 27, provided that the company’s proposed merger with H.J. Heinz Holding Corp. does not close on or before July 27, according to Nasdaq.

If the merger closes on or before July 27, in lieu of Kraft paying its dividend announced today, the combined company – Kraft Heinz Co. – plans 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 Kraft Heinz Co. to all shareholders of record of Kraft Heinz Co. 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, Kraft also declared a special cash dividend of $16.50 per share, 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.

 

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