US: Brown-Forman still keen to buy despite US$850m dividend pay-out
Brown-Forman's extra dividend payment will be made just after Christmas
Brown-Forman has lined up a special dividend payment to the tune of around US$850m, but maintains it still has enough capital to make “strategic acquisitions”.
The Kentucky-based company, which owns the Jack Daniel's and Southern Comfort spirits brands, said earlier today (27 November) that it will pay US$4 per share on its class A and class B common stock. Payment will be made on 27 December to shareholders of record on 12 December.
The pay-out is in addition to the quarterly dividend of US$0.255 per share that was confirmed earlier this month.
“The company chose to make this payment in calendar 2012 because of the uncertainty surrounding future dividend tax rates,” said company chief executive Paul Varga.
“Even after this special dividend, we retain ample capital capacity to make long-term investments in our business, such as the current expansion of the Jack Daniel distillery and strategic acquisitions.”
Last month, Nomura suggested that Brown-Forman may be poised to break open a US$3bn warchest to fund a whisk(e)y or vodka acquisition.
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