US: Brown-Forman AGM okays stock split, elects board members
Brown-Forman held its AGM earlier today
Brown-Forman held its annual stockholder meeting today (26 July) and approved the company's sixth stock split.
The US firm proposed the split last month, with the shareholders giving the move their blessing today. They also re-elected the board of directors, and bade farewell to Richard Mayer, who has retired.
A board meeting after the AGM approved Brown-Forman's next dividend, of US$0.2333 per share, which will be paid on 1 October.
Company chairman & CEO Paul Varga used the AGM to pronounce himself "encouraged by the growth trends in North American whiskey and the increasing role our premium and super-premium brands are playing in it.
"We see excellent potential in this dynamic and attractive global category," he said.
Brown-Forman reported it full-year results, to the end of April, last month, with sales holding firm but profits being dented by the sale of its Californian wine interests to Concha y Toro last year.
Brown-Forman Announces 3-for-2 Stock Split; Directors Elected; Dividend Declared
LOUISVILLE, Ky.--(BUSINESS WIRE)--
Brown-Forman Corporation (BF-A) (BF-B) announced today at the company’s regular annual meeting of stockholders that its shareholders approved an amendment to the corporation’s charter to increase the number of authorized shares of Class A common stock to 85 million and Class B common stock to 400m. The authorization of additional shares enables the previously approved three-for-two stock split for both its Class A and Class B common stock to be paid in the form of a stock dividend.
Stockholders of record as of the close of business on August 3, 2012, will receive one additional share of stock for every two shares of stock held for each respective class of stock with the distribution of the additional shares to occur on August 10, 2012. The share price will be adjusted accordingly on the New York Stock Exchange for trading beginning on August 13, 2012.
Brown-Forman shareholders also re-elected the following individuals to the Brown-Forman Board of Directors: Joan C. Lordi Amble; Patrick Bousquet-Chavanne; Geo. Garvin Brown IV; Martin S. Brown, Jr.; Bruce L. Byrnes; John D. Cook; Sandra A. Frazier; William E. Mitchell; Dace Brown Stubbs; Paul C. Varga; and James S. Welch, Jr.
In remarks to shareholders during the meeting, Brown-Forman Board Chairman Geo. Garvin Brown IV said, “Brown-Forman is well positioned for long-term growth and endurance, as evidenced by the evolution of the board, the strength of the management team, and especially the support of our company’s long-term shareholders.”
Brown also thanked retiring director Richard P. Mayer for his 18 years of exemplary service to Brown-Forman.
Paul Varga, chairman and CEO, discussed the company's strong and accelerating performance in fiscal 2012, led by the Jack Daniel's trademark across a diverse set of markets globally, and expressed enthusiasm for the company's future growth prospects. "I am encouraged by the growth trends in North American Whiskey and the increasing role our premium and super-premium brands are playing in it. We see excellent potential in this dynamic and attractive global category."
Varga also paid tribute to the memory of Owsley Brown II, the company's former CEO and board chairman, who passed away last September, to whom Varga dedicated this year's meeting.
In a subsequent meeting, the Board of Directors approved a regular quarterly cash dividend of 23 & 1/3 cents per share on the split-adjusted Class A and Class B common stock. Stockholders of record on September 7, 2012, will receive the cash dividend on October 1, 2012. With this dividend, Brown-Forman will have paid regular quarterly cash dividends for 67 consecutive years.
Additionally, Brown-Forman announced that it was recently added to the Standard and Poor’s High Yield Dividend Aristocrat Index. This index is designed to track the performance of a select group of companies within the Standard and Poor’s Composite 1500 that have followed a policy of consistently increasing dividends every year for at least 20 years and have capital appreciation potential, which are both key factors in investors' total return expectations. Brown-Forman is already a member of the Standard and Poor’s 500 Dividend Aristocrats Index, having increased the regular quarterly cash dividend for 28 consecutive years
Original source: Company Release
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