Albertsons Companies, Inc. (ACI) said that it will immediately begin the process of paying the Special Dividend and amounts will be distributed as soon as practicable to stockholders of record as of the close of business on October 24, 2022.
The move comes following the State of Washington's Supreme Court denied a motion by the Attorney General of the State of Washington to hear an appeal from the trial court's denial of its request to enjoin the Company from paying its previously announced $6.85 per common share Special Dividend, originally scheduled to be paid November 7, 2022.
The temporary restraining order preventing the payment of the Special Divided has been lifted as a result of the decision, Albertsons said.
Albertsons noted that its proposed merger with Kroger Co. is continuing through required regulatory review, including seeking clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
In October, Kroger (KR) agreed to buy Albertsons for $34.10 per share, implying an enterprise value of about $24.6 billion.
Albertsons announced it would pay a special cash dividend of up to $4 billion to its shareholders. The company noted that the cash component of the $34.10 per share consideration would be reduced by the per share amount of the special cash dividend, which is expected to be about $6.85 per share.
However, Attorney Generals of California, Illinois and Washington D.C. filed a lawsuit to prevent Albertsons from paying a $4 billion dividend to shareholders.
They claimed that Albertsons, which owns such grocery brands as Safeway and Star Market, should use the money to compete against Kroger and that the dividend would harm retail segment.
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