Altria Board of Directors Announces Intention to Pursue the Spin-Off of Philip Morris International and Increases Regular Quarterly Dividend |
NEW YORK--(BUSINESS WIRE)--Aug. 29, 2007--Regulatory News:
The Board of Directors of Altria Group, Inc. (NYSE: MO) today
announced its intention to pursue the spin-off of Philip Morris
International Inc. to Altria's shareholders and voted to increase the
company's regular quarterly dividend.
The new quarterly dividend of $0.75 per common share is up 8.7%
from the previous rate of $0.69 per common share, and represents an
annualized rate of $3.00 per common share. The dividend is payable on
October 10, 2007 to stockholders of record as of September 14, 2007.
The ex-dividend date is September 12, 2007.
Regarding the contemplated spin-off of Philip Morris
International, the Altria Board of Directors anticipates that it will
be in a position to finalize its decision and announce the precise
timing of the spin-off at its regularly scheduled meeting on January
30, 2008.
In addition to a final determination by the Board, the spin-off of
Philip Morris International will be subject to the receipt of a
favorable ruling from the Internal Revenue Service, the receipt of an
opinion of tax counsel, the effectiveness of a registration statement
with the Securities and Exchange Commission, as well as the execution
of several intercompany agreements and the finalization of other
matters.
Upon completion of the plan, it is anticipated that Michael E.
Szymanczyk will be appointed Chairman and Chief Executive Officer of
Altria Group, Inc. and Louis C. Camilleri will assume that role at
Philip Morris International Inc.
"Today's announcement underscores our sustained and determined
commitment to create enduring long-term shareholder value. I am
convinced that this transaction will enhance growth at both Altria and
Philip Morris International," said Mr. Camilleri, Chairman and Chief
Executive Officer of Altria.
Conference Call
Altria will host a live audio webcast of a conference call today
at 1:00 p.m. ET. During the webcast, Mr. Camilleri will discuss
today's announcement and take questions from the investment community
and news media. The webcast will be in a listen-only mode. Access is
available at www.altria.com. An archived copy of the webcast will be
available until 5:00 p.m. ET on Friday, September 28, 2007.
Altria Group, Inc. Profile
As of June 30, 2007, Altria Group, Inc. owned 100% of Philip
Morris International Inc., Philip Morris USA Inc. and Philip Morris
Capital Corporation, and approximately 28.6% of SABMiller plc. The
brand portfolio of Altria Group, Inc.'s tobacco operating companies
includes such well-known names as Marlboro, L&M, Parliament and
Virginia Slims. Altria Group, Inc. recorded 2006 net revenues from
continuing operations of $67.1 billion.
Trademarks and service marks mentioned in this release are the
registered property of, or licensed by, the subsidiaries of Altria
Group, Inc.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and
other forward-looking statements that involve a number of risks and
uncertainties and are made pursuant to the Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995. The following
important factors could cause actual results and outcomes to differ
materially from those contained in such forward-looking statements.
Altria Group, Inc.'s tobacco subsidiaries (Philip Morris USA and
Philip Morris International) are subject to intense price competition;
changes in consumer preferences and demand for their products;
fluctuations in levels of customer inventories; the effects of foreign
economies and local economic and market conditions; unfavorable
currency movements and changes to income tax laws. Their results are
dependent upon their continued ability to promote brand equity
successfully; to anticipate and respond to new consumer trends; to
develop new products and markets and to broaden brand portfolios in
order to compete effectively with lower-priced products; and to
improve productivity.
Altria Group, Inc.'s tobacco subsidiaries continue to be subject
to litigation, including risks associated with adverse jury and
judicial determinations, and courts reaching conclusions at variance
with the company's understanding of applicable law and bonding
requirements in the limited number of jurisdictions that do not limit
the dollar amount of appeal bonds; legislation, including actual and
potential excise tax increases; discriminatory excise tax structures;
increasing marketing and regulatory restrictions; the effects of price
increases related to excise tax increases and concluded tobacco
litigation settlements on consumption rates and consumer preferences
within price segments; health concerns relating to the use of tobacco
products and exposure to environmental tobacco smoke; governmental
regulation; privately imposed smoking restrictions; and governmental
and grand jury investigations.
Altria Group, Inc. and its subsidiaries are subject to other risks
detailed from time to time in its publicly filed documents, including
its Quarterly Report on Form 10-Q for the period ended June 30, 2007.
Altria Group, Inc. cautions that the foregoing list of important
factors is not complete and does not undertake to update any
forward-looking statements that it may make.
CONTACT: Altria Group, Inc.
Nicholas M. Rolli, 917-663-3460
Timothy R. Kellogg, 917-663-2759
SOURCE: Altria Group, Inc.
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