Bakers Journal

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Saputo announces dividend reinvestment plan


June 1, 2020
By Bakers Journal


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Logo courtesy of Saputo Inc.

Saputo Inc. announced that it has implemented a Dividend Reinvestment Plan or DRIP, effective as of the date of this post. Participation in the DRIP is optional and will not affect shareholders’ cash dividends, unless they elect to participate in the DRIP.

The DRIP will provide Saputo’s eligible shareholders with the opportunity to have all or a portion of the cash dividends declared on their common shares automatically reinvested into additional common shares (the “Reinvestment Shares”) of the Company. The benefits of enrolling in the DRIP include the:

  • convenience of automatic reinvestment of dividends in Reinvestment Shares;
  • flexibility to enrol some or all common shares in the DRIP, providing the opportunity to reinvest all or a portion of dividends in Reinvestment Shares, while continuing to receive the remainder in cash; and
  • ability at the current time to acquire Reinvestment Shares at a discount to the Average Market Price without paying any brokerage fees.

Participants in the DRIP will, until further notice, acquire Reinvestment Shares issued from treasury at a price equal to the volume weighted average price of the Company’s common shares on the Toronto Stock Exchange during the five trading days immediately preceding the dividend payment date, minus a discount of 2 per cent. Saputo will have the discretion to change or eliminate the discount applicable to Treasury Purchases, provided that such discount shall not exceed 5 per cent of Average Market Price. Saputo will also be entitled, at its discretion and in accordance with the DRIP, to fund the DRIP with common shares acquired on the open market.

Saputo’s principal shareholder, Jolina Capital Inc., a holding company controlled by Emanuele (Lino) Saputo, has indicated to the Company its intention to enrol approximately 30 per cent of the common shares it beneficially owns or controls, directly or indirectly, in the DRIP.

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Only future dividends declared by Saputo will be eligible for reinvestment in the DRIP, commencing with the dividend to be paid on July 9, 2020, to shareholders on record as of June 30, 2020. To participate in the DRIP, registered shareholders must deliver a properly completed enrolment form to Computershare Trust Company of Canada (the “Agent”) at a minimum five (5) business days before a dividend record date. Registered shareholders who wish to participate in the DRIP for the July 9, 2020, dividend must deliver a completed enrolment form to the Agent no later than 4:00 p.m. (EST time) on June 22, 2020.

Beneficial shareholders who wish to participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial institution or other intermediary through which they hold common shares to inquire about the applicable enrolment deadline and to request enrolment in the DRIP.

No commissions, service charges or brokerage fees will be payable by participants in connection with Treasury Purchases. However, beneficial shareholders who wish to participate in the DRIP through their financial advisor, broker, investment dealer, bank, financial institution or other intermediary should consult that intermediary to confirm what fees, if any, the nominee may charge to enrol in the DRIP on their behalf or whether the nominee’s policies might result in any costs otherwise becoming payable by the beneficial shareholder. Commissions, service charges, brokerage fees and other administrative fees may be payable in connection with the termination of participation in the DRIP or the withdrawal or disposition of Reinvestment Shares.

Participation in the DRIP does not relieve shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in Reinvestment Shares. Shareholders should consult their tax advisors concerning the tax implications of their participation in the DRIP having regard to their particular circumstances.

Unless otherwise approved by the Company, shareholders resident outside of Canada will not be entitled to participate in the DRIP. The Company intends to facilitate the participation in the DRIP of shareholders that are “qualified institutional buyers” in the United States, as defined in Rule 144A under the United States Securities Act of 1933.