Safeway Unveils Blackhawk Network Stock Dividend

On the heels of the announcement earlier this month that Safeway plans to merge with Albertsons, the Pleasanton, Calif.-based grocer said it will distribute the remaining 37.8 million shares of Blackhawk Network Holdings stock to Safeway shareholders.

Safeway plans to distribute the special stock on April 14 to all Safeway stockholders of record on April 3. The distribution will take place in the form of a pro rata dividend of Blackhawk Class B common stock.

As of March 21, Safeway had approximately 230.3 million shares of its common stock outstanding. Accordingly, Safeway stockholders will receive approximately 0.164308 of a share of Blackhawk Class B common stock for every share of Safeway common stock held as of April 3.

The final distribution ratio for the stock dividend will be calculated by dividing the number of shares of Blackhawk Class B common stock by the number of shares of Safeway common stock outstanding on April 3. Stockholders will receive cash in lieu of any fraction of a share of Blackhawk stock that they otherwise would have received.

No vote or action is required by Safeway's stockholders in order to receive the special stock dividend. According to Safeway, however, those who sell their shares of Safeway common stock prior to or on the distribution date may be selling their right to receive the Blackhawk special stock dividend. Stockholders are encouraged to consult their financial advisors for further details.

Safeway Inc. operates 1,335 stores in 20 states and the District of Columbia, 13 distribution centers and 20 manufacturing plants, and employs approximately 138,000 employees.