The special dividend includes the regular quarterly dividend of approximately USD 11 million and is payable to shareholders of record as of 22 July 2010. Weyerhaeuser expects to pay the special dividend on 01 September 2010.
Shareholders can elect stock or cash for the special dividend, with the total cash payment limited to 10%, or USD 560 million, of the total distribution. If cash elections exceed the approved amount, shareholders will receive a pro-rata amount of their distribution in cash and the remaining portion in stock.
“Today’s announcement represents the final major step in executing our plan to convert to a REIT,” said Dan Fulton, president and chief executive officer. “The REIT structure best supports our strategic direction and positions Weyerhaeuser for future growth. The tax efficiency of the REIT structure also will enable us to increase our timberland earnings and make higher distributions to our shareholders.”
A company makes a REIT election when it files the tax return for the effective year. Weyerhaeuser intends to make the REIT election when it files its 2010 tax return in 2011. The election would be effective beginning 01 January 2010.
The company will file a prospectus later this week covering the securities that will be issued in the special dividend. The prospectus will contain a full description of the special dividend, including key dates.
Weyerhaeuser will hold a live conference call at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) on 12 July to discuss today’s announcement.
To access the conference call from within North America, dial (877) 296-9413 (access code – 84047456) at least 15 minutes before the call. Those calling from outside North America should dial 1-(706) 679-2458 (access code – 84047456). Replays will be available for one week at (800) 642-1687 (access code – 84047456) from within North America and at 1-(706) 645-9291 (access code – 84047456) from outside North America.
The call is being webcast through Weyerhaeuser’s Internet site at http://investor.weyerhaeuser.com and is accessible by selecting the “Special Dividend” link.
Weyerhaeuser Company, one of the world’s largest forest products companies, began operations in 1900. The company grows and harvests trees, builds homes, and makes a range of forest products essential to everyday lives. Weyerheauser manages its timberland on a sustainable basis in compliance with internationally recognized forestry standards. At the end of 2009, the company employed approximately 14,900 employees in 10 countries, had customers worldwide, and generated USD 5.5 billion in sales in 2009. Weyerheauser's stock trades on the New York Stock exchange under the symbol WY. Additional information is available at http://www.weyerhaeuser.com.