Sara Lee Spinoff Goes Dutch

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Sara Lee (NYSE:SLE) shares soared Friday after the company announced further details of the highly-anticipated spinoff of its beverage division.

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After receiving a Private Letter Ruling from the U.S. Internal Revenue Service, Sara Lee reported that it anticipates a $4.55 billion distribution of stock and a $3 special dividend for shareholders as a result of the split.

“We are very pleased to reach this major milestone in our spin-off process and to provide our shareholders with additional news about the domiciling of the Coffee & Tea Company and the payment of the $3 dividend,” said Executive Chairman Jan Bennink.

The Downers Grove-based food company will move its retail meat business to Chicago, while the beverage arm, including brands such as Senso and Bravo, will be based in Amsterdam.

After the split, the beverage business will be held by D.E. International Holdings. DE plans to change the company name and apply to list the stock on the NYSE Euronext in Amsterdam.

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To contact the reporter on this story: Gillian White at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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