Cigarette seller Carreras will pay a J$2.5-billion dividend to shareholders as part of its pension scheme wind-up.

The amount resulted from directors declaring an interim dividend of J$5.19 per stock unit. Carreras has over 485 million ordinary shares.

"At a meeting of the board of directors held on September 28, 2012, the directors declared an interim dividend of J$5.19 per stock unit to be paid out of interim pension surplus distribution on October 30, 2012 to stockholders as shown by the Register of Members on October 16, 2012," stated the company.

Carreras in July announced plans to pay out J$3.4 billion from the winding up of a pension scheme. The decision to wind up the Carreras Group Limited superannuation scheme was made in 2007; it was replaced by a new fund with two components - a defined benefit (DB) and a defined contribution (DC) segment.

Employees who were members of the old scheme became members of the DB component of the new fund, while those who joined the company after December 2006 signed on as DC members.

The company did not return calls for comment up to press time.

The J$2.5 billion will be paid out on October 30.

business@gleanerjm.com