ROSH HAAYIN, Israel, January 14 /PRNewswire-FirstCall/ -- Blue
Square-Israel Ltd. (NYSE: BSI) (hereinafter: "Blue Square") announced today
that The Company's Board of Directors today declared a cash dividend of NIS
75 million (the equivalent of approx. U.S. $20.36 million based on today's
representative rate of exchange), or NIS 1.7155774 (the equivalent of approx.
U.S. $0.47 based on today's representative rate of exchange) per share.
The dividend, net of taxes withheld at source pursuant to Israeli law,
will be payable on or about February 25, 2010 to shareholders of record as of
close of business on February 11, 2010. The dividend will be paid to ADS
holders a few days later. ADS holders will be paid in US Dollars based on the
representative rate of exchange of the US Dollar against the NIS published by
the Bank of Israel on or about February 25, 2010.
Following the dividend distribution, the conversion ratio of the
Company's 5.9% convertible debentures issued in August 2003 (outstanding
principal amount of 13,268,880 as of January 14, 2010) will be adjusted on
February 12, 2010, due to the dividend described above. Following the
adjustment, each NIS 18.379 par value of the convertible debentures will be
convertible into one ordinary share of the Company.
The Board decided that in view of the changes and development of the
Company since 2003, including Reorganization of the Real Estate properties in
a separate company (that operates under debt to EBITDA ratios appropriate for
real estate companies and currently holds a major part of the consolidated
debt), the purchase of the BEE Group (non food retailer), and the
reorganization of food retail activities in its subsidiary Mega Retail Ltd,
that the net debt (total debt less cash and cash equivalent and other liquid
financial assets) to EBITDA ratio is to be calculated by deducting the debt
related by the company to real estate that is not in use by the company
(being equal to 75% of the investment property as recorded on the balance
sheet). On September 30th, 2009, the net debt to EBITDA (as calculated above)
was less than 2. The board of directors further resolved that the net debt to
EBITDA ratio (as calculated above) for dividend distribution will not exceed
4.5 instead of 3.0 that was decided in 2003 and was appropriate for the
company's former structure.
As of September 30th, 2009, the Company had approximately 1,128 million
NIS of cash and cash equivalent and other liquid financial assets including
credit card receivables on its balance sheet.
Blue Square-Israel Ltd. is a leading retailer in Israel. A pioneer of
modern food retailing, in the region. Blue Square currently operates 204
supermarkets under different formats, each offering varying levels of
services and prices. For more information, please refer to the Blue
Square-Israel Ltd. website at http://www.bsi.co.il.
Forward Looking Statements
This press release contains forward-looking statements within the meaning
of safe harbor provisions of the U.S. Private Securities Litigation Reform
Act of 1995. Forward-looking statements may include, but are not limited to,
plans or projections about our business and our future revenues, expenses and
profitability. Forward-looking statements may be, but are not necessarily,
identified by the use of forward-looking terminology such as "may,"
"anticipates," "estimates," "expects," "intends," "plans," "believes," and
words and terms of similar substance. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause
actual events, results, performance, circumstance and achievements to be
materially different from any future events, results, performance,
circumstance and achievements expressed or implied by such forward-looking
statements. These risks, uncertainties and other factors include, but are not
limited to, the following: our ability to compete effectively against
low-priced supermarkets and other competitors; the effect of the recession in
Israel on the sales in our stores and on our profitability; quarterly
fluctuations in our operating results that may cause volatility of our ADS
and share price; risks associated with our dependence on a limited number of
key suppliers for products that we sell in our stores; the effect of an
increase in minimum wage in Israel on our operating results; the effect of
any actions taken by the Israeli Antitrust Authority on our ability to
execute our business strategy and on our profitability; the effect of
increases in oil, raw material and product prices in recent years; the
effects of damage to our reputation or to the reputation to our store brands
due to reports in the media or otherwise; and other risks, uncertainties and
factors disclosed in our filings with the U.S. Securities and Exchange
Commission, including, but not limited to, risks, uncertainties and factors
identified under the heading "Risk Factors" in our Annual Report on Form 20-F
for the year ended December 31, 2008. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
of this press release. Except for our ongoing obligations to disclose
material information under the applicable securities laws, we undertake no
obligation to update the forward-looking information contained in this press
release.
Contact:
Blue Square-Israel Ltd.
Elli Levinson-Sela
General Counsel & Corporate Secretary
Telephone: +972-3-9282670
Fax: +972-3-9282498
Email: ellils@bsi.co.il
SOURCE Blue Square Israel Ltd
ALON BLUE SQUARE ISRAEL LTD 
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