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The Warehouse Group founder Stephen Tindall and his family and charity interests pick up more than $55 million under a special dividend the company announced yesterday.
The retailer told the NZX it was distributing a special dividend of 35c a share or around $109 million, on top of the ordinary dividend of 5.5c a share.
Tindall is believed to own 27 per cent of shares which would attract around $29 million from the special dividends.
But the charitable Tindall Foundation and other family interests are understood to take the combined interest to around 51 per cent of the shares in the company.
Woolworths Australia and Foodstuffs New Zealand - which each own 10 per cent of the Warehouse - are challenging a Commerce Commission ruling that prevents them from increasing their stakes to 100 per cent.
Chairman Keith Smith said the special dividend resulted from a review of the Warehouse's capital structure after the sale of its Australian subsidiary, various property assets and the recent sale of the group's interest in the "The Base" shopping complex in Te Rapa, north of Hamilton
He said the company was still considering options for acquisitions in tandem with the dividend and the dividend's level had not altered its options.
Smith said the special dividend was announced before the company results next Friday so investors could increase their benefit under the PIE tax regime.
He hinted there could be more special dividends or buybacks, saying the Warehouse would consider undertaking further initiatives in the 2008 calendar year to manage its capital.
Meanwhile, ABN Amro predicts the company results will be in line with earlier guidance for a net profit of $96.3 million, excluding $11.9 million from the sale of the Te Rapa property.
ABN Amro said the result would be a sideshow to the ongoing corporate activity over a potential sale, which will be centred around an appeal in the High Court to be heard on October 3.
Apart from the appeal any future sale, and the return of a premium for the share price, would be dependent on Tindall's approach to a potential sale.
ABN Amro estimated a 12-month target price of $6.82, saying Tindall was "a seller" and because he was looking to maximise shareholder value the machinations over ownership were "far from over".
Shares in the Warehouse closed up 14c at $5.88 yesterday.
