Viterra Inc.

Viterra Inc.

December 01, 2010 17:10 ET

Viterra Announces New Dividend Policy

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2010) - Viterra Inc. (TSX:VT) (ASX:VTA), a global food ingredients supplier, today announced the commencement of a cash dividend payable to holders of Viterra's common shares, which trade on the Toronto Stock Exchange (TSX) under the symbol VT, and to holders of its CHESS depository instruments, (CDIs), which trade on the Australian Securities Exchange (ASX) under the symbol VTA. Each CDI confers a beneficial interest in one common share. Therefore the holders of CDIs are entitled to a dividend calculated on the same basis as the holders of Viterra's common shares.

The dividend rate is currently intended to be ten cents per share Canadian (C$0.10) per year and will be reviewed semi-annually by the Board of Directors.

On December 1, 2010, the Board declared a five cent Canadian (C$0.05) dividend payable on February 10, 2011 to holders of record on January 20, 2011. Viterra's Board of Directors established its formal dividend policy and will review the policy from time to time in light of the company's cash flow, earnings, financial position and other relevant factors. 

President and Chief Executive Officer, Mayo Schmidt said, "The investments we have made over the past several years have created a global operational platform that enable Viterra to take advantage of continued strengthening demand within the global agricultural arena, providing a stronger and more diversified base of earnings and cash flow. While our top priority for our free cash flow has been to re-invest in value-creating growth strategies, it is the the right time to recognize our shareholders' ongoing commitment to the Company and institute a regular dividend consistent with our objectives to maximize value for our shareholders while maintaining a strong balance sheet."

Based on Viterra's closing share price of $9.06 on December 1, 2010, an annual dividend of C$0.10 cents per share represents approximately a 1% yield. 

Payments to Canadian shareholders will be made in Canada dollars, while payments to non-resident shareholders will be made in U.S. dollars at the "noon buying rate in Canada (Eastern Standard Time)" prevailing on the record date. For CDI holders, payments will be made in Australian dollars at the "noon buying rate in Canada (Eastern Standard Time)" prevailing on the record date. 

Forward-Looking Information

This release contains forward looking statements that involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such statements. Important factors that could affect these statements include, without limitation, weather conditions; producer's decisions regarding total planted acreage, crop selection, and utilization levels of farm inputs such as fertilizers and pesticides; grain export levels; changes in government policy and transportation deregulation; world agricultural commodity prices and markets; currency risk; changes in competitive forces including pricing pressures; and global political and economic conditions, including grain subsidy actions of the United States and European Union.

About Viterra

Viterra Inc. provides premium quality ingredients to leading global food manufacturers. Headquartered in Canada, the global agribusiness has extensive operations across Canada, the United States, Australia, and New Zealand, with Adelaide, Australia as the base for Viterra's Southeast Asian operations. Our growing international presence also extends to offices in Japan, Singapore, China, Switzerland, Italy, Ukraine and Germany. Driven by an entrepreneurial spirit, we operate in three distinct businesses: grain handling and marketing, agri-products, and value-added processing. Our expertise, close relationships with producers, and superior logistical assets allow the company to consistently meet the needs of the most discerning end-use customers, helping to fulfill the nutritional needs of people around the world.

Contact Information

  • Common Shareholders:
    Computershare Investor Services Inc.
    Toll-Free: 1-866-997-0995
    Computershare Investor Services Inc.
    9th Floor, 100 University Avenue
    Toronto, Ontario
    M5J 2Y1
    CDI Holders:
    Computershare Investor Services Inc.
    Toll-Free: Australia: 1300 550 374
    Outside Australia: 011 61 3 9415 4072
    Computershare Investor Services Inc.
    Level 5, 115 Grenfell Street
    Adelaide, South Australia
    Australia 5000
    Viterra Inc.
    Peter Flengeris
    Investor Relations and Corporate Affairs
    (306) 569-4810