The Board of Directors of Altria Group, Inc. (NYSE: MO) today (August 29) 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. -Altria
