AMSTERDAM Food and drink maker Sara Lee Corp. SLE.N expects the spin-off of its coffee and tea business, which will move to the Netherlands, to be completed by the end of June, it said on Friday.
Sara Lee has said it will split itself into a North American meat company, with brands including Hillshire Farm deli meat and Jimmy Dean sausages, and a European-based international coffee and tea company, encompassing such brands as Douwe Egberts and Pickwick.
The coffee and tea business, DE International Holdings NV, will be renamed and relocated to Utrecht and is expecting to list on the Amsterdam stock exchange NYX.N by the middle of 2012, Sara Lee said.
Each Sara Lee share will be split into two, one for the meat and one for the coffee business, according to Sara Lee spokesman Quarles van Ufford.
Separately, DE International filed a preliminary prospectus at the U.S. Securities and Exchange Commission dated March 1,saying its Amsterdam offering would be up to $4.6 billion worth of ordinary shares.
The coffee and tea business reported 2.6 billion euros in 2011 sales, according to the SEC filing.
In a separate statement Sara Lee said it would pay $3 as dividend to its shareholders soon after the divestment of its coffee and tea business and that at the time of the spin-off, Sara Lee expects to have total debt of about $1.7 billion and $300 million in cash.
(Additional reporting Eileen Soreng in Bangalore, Editing by Mark Potter)