The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

KP Tissue declares an Initial Dividend of $0.217 per Common Share

Wednesday, March 27, 2013

KP Tissue declares an Initial Dividend of $0.217 per Common Share07:00 EDT Wednesday, March 27, 2013/NOT FOR DISTRIBUTION IN THE U.S.A. OR OVER U.S. WIRE SERVICES/MISSISSAUGA, ON, March 27, 2013 /CNW Telbec/ - KP Tissue Inc. ("KPT") (TSX: KPT) announced today that the Board of Directors has declared an initial dividend of $0.217 per common share, payable on April 15, 2013 to shareholders of record at the close of business on April 8, 2013, subject to applicable law.The dividends paid are designated as "eligible" dividends for the purposes of the Income Tax Act (Canada) and any similar provincial and territorial legislation.The dividend is being declared in connection with the declaration of a corresponding quarterly distribution by Kruger Products L.P. ("KPLP") in which KP Tissue holds a limited partnership interest.  KPT has adopted a policy to declare quarterly dividends in order to distribute the amount of all regular quarterly distributions received from KPLP (other than distributions in respect of tax) to holders of KPT common shares, subject to the requirements of applicable corporate law.Dividend Reinvestment PlanThe Corporation has adopted a Dividend Reinvestment Plan ("DRIP") under which eligible shareholders may elect to have their cash dividends reinvested in additional common shares of KPT.  Under the Plan, the Corporation will automatically reinvest all cash dividends of KPT in newly issued Common Shares at a price per Common Share equal to 97% of the 5-day weighted average trading price of the Common Shares prior to the dividend payment date.The Common Shares purchased under the Plan will be acquired by shareholders without the payment of any brokerage fees or other acquisition costs.  Only Canadian shareholders are eligible to participate in the DRIP and the DRIP is subject to additional limitations and restrictions. Interested shareholders are encouraged to review the full text of the DRIP, available on KPT's website at  Participation in the DRIP does not relieve shareholders of any liability for taxes that may be payable in connection with dividends that are reinvested in new Common Shares under the DRIP. Shareholders should consult their tax advisors concerning the tax implications of their participation in the DRIP having regard to their particular circumstances.Participants in the depository service of CDS Clearing and Depositary Services Inc. who wish to enroll in the DRIP on behalf of shareholders must elect online via CDSX prior to 5:00 p.m. (Toronto Time) on April 8, 2013, the dividend record date. Shareholders who wish to participate in the DRIP should contact their broker, financial institution, or other nominee through which their Common Shares are held to determine their eligibility and provide appropriate enrolment instructions, and to ensure any deadlines or other requirements that such broker, financial institution, or nominee may impose or be subject to are met.This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1993, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.About KP Tissue Inc.KP Tissue Inc. (KPT) was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP. For more information visit Kruger Products L.P.Kruger Products L.P. is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products L.P. serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®' and White Swan®. In the U.S., Kruger Products L.P. manufactures the White Cloud® brand, as well as many private label products. Kruger Products L.P. has approximately 2,300 employees across North America and operates five FSC® CoC- certified mills, four of which are located in Canada and one in the US.  For more information visit KP Tissue Inc.For further information: Wendy Kelley General Counsel and Corporate Secretary KP Tissue Inc. Tel.: 905.812.6936 INVESTORS: Mike Baldesarra Director of Investor Relations KP Tissue Inc. Tel.: 905.812.6962