8-KOther EventsExhibits & Filings

ALTRIA GROUP, INC. 8-K Report, Corporate Update (Aug 29, 2007)

Filed August 29, 2007For Securities:MO

Summary

Altria Group, Inc. (MO) announced on August 29, 2007, its Board of Directors intends to pursue the spin-off of Philip Morris International Inc. (PMI) to Altria shareholders. This strategic move, subject to various conditions including IRS ruling and SEC effectiveness, is expected to be finalized by January 30, 2008. The spin-off aims to create two distinct publicly traded entities, potentially unlocking value and allowing for more focused business strategies. In conjunction with this significant corporate action, Altria also announced an increase in its regular quarterly dividend. The new quarterly dividend rate has been raised by 8.7% to $0.75 per common share, reflecting an annualized rate of $3.00. This dividend increase signals confidence in the company's ongoing performance and commitment to returning capital to shareholders, even as it navigates a major restructuring.

Key Highlights

  • 1Altria intends to spin off its international tobacco business, Philip Morris International (PMI), to shareholders.
  • 2The decision on the spin-off's precise timing is anticipated by January 30, 2008.
  • 3The spin-off is contingent upon several factors, including a favorable IRS ruling, tax counsel opinion, and SEC registration statement effectiveness.
  • 4Altria's Board of Directors has approved an 8.7% increase in the regular quarterly dividend.
  • 5The new quarterly dividend rate is $0.75 per common share, up from $0.69.
  • 6The annualized dividend rate will be $3.00 per common share.
  • 7The increased dividend payment is scheduled for October 10, 2007, to shareholders of record on September 14, 2007.

Frequently Asked Questions

Altria announced its intention to spin off its international tobacco business, Philip Morris International (PMI), to its shareholders. This means PMI will become a separate, publicly traded company.

The spin-off is subject to a final decision by Altria's Board of Directors, a favorable ruling from the Internal Revenue Service (IRS), an opinion from tax counsel, the effectiveness of a registration statement with the SEC, and the execution of intercompany agreements.

Altria's Board of Directors anticipates making a final decision and announcing the precise timing of the spin-off at its regularly scheduled meeting on January 30, 2008.

Altria's Board of Directors approved an increase in the regular quarterly dividend by 8.7%, setting the new rate at $0.75 per common share. This brings the annualized dividend rate to $3.00 per common share.