Q: Hello 5i,
I have, below, cut and pasted a segment of a press release:
"A&W Food Services of Canada Inc. ("Food Services") will also receive a similar dividend from Trade Marks on its investment in Trade Marks.
Food Services also announced today that it has declared a dividend in the amount of $1.0 million to its shareholder. The dividend will be paid out of Food Services' available working capital and is separate and distinct from distributions declared by the Fund to unitholders of the Fund..."
I have looked at the Investor Page of the AW.UN website and can find no clarity around what happens to the $1.0 million dividend. I am surmising that it goes into the larger fund for whatever purpose they deem necessary, but will NOT trickle down to individual unitholders. It seems the regular monthly dividend of $0.16 is all that we will receive, as per usual. Does this interpretation seem correct?
This confusion over the 3 entities, and who gives/gets what, goes a long way towards explaining the need for a much simplified corporate structure, imho!!
Thanks for any clarity you can provide!!
Cheers,
MIke
I have, below, cut and pasted a segment of a press release:
"A&W Food Services of Canada Inc. ("Food Services") will also receive a similar dividend from Trade Marks on its investment in Trade Marks.
Food Services also announced today that it has declared a dividend in the amount of $1.0 million to its shareholder. The dividend will be paid out of Food Services' available working capital and is separate and distinct from distributions declared by the Fund to unitholders of the Fund..."
I have looked at the Investor Page of the AW.UN website and can find no clarity around what happens to the $1.0 million dividend. I am surmising that it goes into the larger fund for whatever purpose they deem necessary, but will NOT trickle down to individual unitholders. It seems the regular monthly dividend of $0.16 is all that we will receive, as per usual. Does this interpretation seem correct?
This confusion over the 3 entities, and who gives/gets what, goes a long way towards explaining the need for a much simplified corporate structure, imho!!
Thanks for any clarity you can provide!!
Cheers,
MIke
5i Research Answer:
Yes it is confusing. A&W Food Services is a separate legal entity, and its dividend does not go to AW.UN holders. Certainly the planned corporate restructuring will clear up some of this type of confusion.