Altria to Spin Off International Unit

U.S. tobacco giant Altria Group Inc. said Wednesday it planned to spin off its Philip Morris International Inc. cigarette unit to shareholders.

The parent company of Philip Morris International, Philip Morris USA and Philip Morris Capital Corp. said it expected to finalize its decision and announce the precise timing of the spinoff at its January board meeting.

A spinoff would be the latest step in a restructuring process New York’s Altria started in March when it spun off its controlling stake in Kraft Foods Inc.

Altria plans to appoint Philip Morris USA Chief Executive Officer Michael Szymanczyk as Altria’s chairman and CEO and current Altria Chairman and CEO Louis Camilleri to the same positions at Philip Morris International.

I am convinced that this transaction will enhance growth at both Altria and Philip Morris International, Camilleri said.

The board also voted to increase the company’s regular quarterly dividend, Altria said.

The new 75 cents-a-share dividend is up 8.7 percent from the previous 69-cent rate and represents an annualized rate of $3 a share, the company said.

The dividend is payable Oct. 10 to stockholders of record on Sept. 14. The ex-dividend date is Sept. 12.