Loblaw Announces Dividend Reinvestment Program

TORONTO — Arguing that conservation of cash was a key priority in the current economic environment, Loblaw here on Wednesday announced a plan to allow shareholders to receive dividends in the form of discounted stock.

Loblaw said it could raise $300 million of equity through the program, in which investors can convert dividends to additional common shares at a 3% discount to the average market price. The company’s largest shareholder, George Weston Ltd., has pledged to participate in the effort, Galen Weston, executive chairman, said at the retailer’s annual meeting.

Also Wednesday, Loblaw said it would raise $350 million in a sale of debt.

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