Hillshire Brands Completes Spin-off, Pays Dividend

By CnAgri2012-07-02 20:35:51 Print

The Hillshire Brands Company, Downers Grove, Ill, formerly Sara Lee Corporation, completed the previously announced separation of its international coffee & tea business. The separation was effected as follows:

Immediately after the distribution of the CoffeeCo common stock, CoffeeCo paid a $3 per share special dividend. The dividend was paid to CoffeeCo's shareholders of record as of the time immediately after the distribution of the CoffeeCo common stock, which were the Sara Lee shareholders of record as of the close of business on the record date.

After the payment of the $3.00 special dividend, CoffeeCo merged with a subsidiary of D.E MASTER BLENDERS 1753 N.V., with CoffeeCo surviving the merger as a subsidiary of D.E MASTER BLENDERS 1753, each share of CoffeeCo common stock was exchanged for one ordinary share of D.E MASTER BLENDERS 1753, and the exchange agent began the process of distributing all of the ordinary shares of D.E MASTER BLENDERS 1753 to the CoffeeCo shareholders, which were the Sara Lee shareholders of record as of the close of business on the record date. The D.E MASTER BLENDERS 1753 ordinary shares are expected to be delivered in book entry form on or about July 9, 2012. Cash will be paid in lieu of any fractional ordinary shares of D.E MASTER BLENDERS 1753.

Immediately following the separation, Sara Lee completed a 1-for-5 reverse stock split of its shares of common stock and changed its name to The Hillshire Brands Company.

Last week, Hillshire Brands common stock began "regular way" trading on the New York Stock Exchange under the ticker symbol "HSH." D.E MASTER BLENDERS 1753 ordinary shares continued to trade on NYSE Euronext Amsterdam on an "as-if-and-when-issued" basis until July 9 when the shares will begin "regular way" trading under the ticker symbol "DE."

"The completion of the D.E MASTER BLENDERS 1753 spin-off is a significant milestone for shareholders and employees, as it creates two pure-play companies that will pursue success independently," said Jan Bennink, former executive chairman of Sara Lee Corp. and chairman of the board, D.E MASTER BLENDERS 1753. "I want to thank our employees around the world for their efforts in reaching this momentous occasion."