Albertsons Companies Issues Statement Regarding the Further Delay of the Washington State Court’s Hearing on its Special Dividend Payment

Rhea-AI Summary

Albertsons Companies (NYSE: ACI) announced that the Washington State Court has postponed the hearing regarding the temporary restraining order (TRO) until December 9, 2022. This TRO, originally granted on November 3, 2022, prevents the company from paying a special dividend of $6.85 per share to stockholders as of October 24. Albertsons maintains that the state’s claim lacks merit and expects to uphold the dividend approved by its Board of Directors.

Positive

• The Board of Directors unanimously approved a special dividend of $6.85 per share.
• Albertsons believes the claim from Washington State is meritless.

Negative

• The TRO postpones the special dividend payment, affecting shareholder returns.

BOISE, Idaho--(BUSINESS WIRE)-- Albertsons Companies (NYSE: ACI) (“Albertsons Cos.” or “the Company”) today announced that the Washington State Court has postponed the date of the hearing regarding the temporary restraining order (“TRO”) granted to the State of Washington until December 9, 2022.

As a result of this postponement, the TRO granted by the Washington State Court on November 3, 2022, remains in effect and restrains the Company from paying the previously announced $6.85 per share Special Dividend (the “Special Dividend”) to stockholders of record as of the close of business on October 24.

Albertsons Cos. continues to believe that the claim brought by the State of Washington is meritless and provides no legal basis for canceling or postponing a dividend that has been duly and unanimously approved by Albertsons Cos.’ fully informed Board of Directors.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the federal securities laws. The “forward-looking statements” include our current expectations, assumptions, estimates and projections about the Special Dividend and the payment thereof. They include statements which the Company believes to be reasonable at this time. You can identify forward-looking statements by the use of words such as “outlook,” “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future” and “intends” and similar expressions which are intended to identify forward-looking statements.

These statements are not guarantees of future performance and are subject to numerous risks and uncertainties which are beyond our control and difficult to predict and could cause actual results to differ materially from the results expressed or implied by the statements.

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

In evaluating our forward-looking statements, you should carefully consider the risks and uncertainties more fully described in the “Risk Factors” section or other sections in our reports filed with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221116005903/en/

For Investor Relations, contact investor-relations@albertsons.com

For Media Relations, contact media@albertsons.com

Source: Albertsons Companies, Inc.

FAQ

What is the status of Albertsons' special dividend?

The Washington State Court has postponed the hearing regarding the special dividend, which remains on hold due to the TRO.

When was the special dividend for Albertsons approved?

The special dividend of $6.85 per share was unanimously approved by the Board of Directors prior to the TRO.

What is the significance of the TRO for shareholders of ACI?

The TRO prevents Albertsons from paying the special dividend, which impacts shareholder distributions.

What date is the hearing for the TRO scheduled?

The hearing regarding the TRO is scheduled for December 9, 2022.

What was the record date for the special dividend payout?

The record date for the special dividend was October 24, 2022.