Kraft Foods Inc. has announced that its board of directors has approved the spinoff of its North American grocery business and declared a pro rata distribution of shares of Kraft Foods Group Inc. (which will hold the North American grocery business) to holders of Kraft Foods Inc. common stock.
The board also declared a regular quarterly dividend of 29 cents per share of Kraft Foods Inc. common stock. This cash dividend is payable on Oct. 15, 2012, to Kraft Foods Inc. stockholders of record as of the close of business on Sept. 19, 2012.
Kraft Foods Inc. will complete the spinoff of its North American grocery business on Oct. 1, 2012 (the distribution date) through a pro rata dividend of all outstanding shares of Kraft Foods Group common stock it owns to its shareholders of record as of the close of business on Sept. 19, 2012 (the record date).
On the distribution date, each Kraft Foods Inc. shareholder will receive one share of Kraft Foods Group common stock for every three shares of Kraft Foods Inc. common stock held by such shareholder on the record date. The distribution of these shares will be made in book-entry form, which means that no physical share certificates will be issued.
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via Kraft Foods Inc. Board Approves Grocery Business Spinoff.