Absa gets Woolworths Financial Services

It is the intention of the board of Woolworths to distribute R2.25 billion of the cash proceeds arising from the transaction and the net cash realised from the transfer of the financial services assets into the joint venture.

The distribution to shareholders will be implemented by way of a special dividend of R750 million, and, subject to prevailing market conditions at the time, an open market share repurchase of the balance.

"A further announcement on the distribution will be made in due course," said Woolworths.

The effective date of the transaction is 1 October 2008.

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