MetLife 2012 Annual Report Download - page 211

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
23. Subsequent Events
Dividends
Preferred Stock
On February 15, 2013, MetLife, Inc. announced dividends of $0.250 per share, for a total of $6 million, on its Series A preferred shares, and $0.406
per share, for a total of $24 million, on its Series B preferred shares, subject to the final confirmation that it has met the financial tests specified in the
Series A and Series B preferred shares, which the Company anticipates will be made on or about March 5, 2013. Both dividends will be payable
March 15, 2013 to shareholders of record as of February 28, 2013.
Common Stock
On January 4, 2013, the Company’s Board of Directors approved a first quarter 2013 dividend of $0.185 per common share payable on March 13,
2013 to stockholders of record as of February 6, 2013. The Company estimates the aggregate dividend payment to be $203 million.
Japan Income Tax Refund
In December 2012, the Tokyo District Court ruled in favor of the Japan branch of American Life in a tax case related to the deduction of unrealized
foreign exchange losses on certain securities held by American Life prior to the ALICO Acquisition. Subsequent to the ruling, American Life will receive a
refund of ¥16 billion ($190 million) related to income tax, interest and penalties, of which $160 million has been collected at December 31, 2012. Under
the indemnification provisions of the Stock Purchase Agreement, MetLife Inc. is required to remit the refund to AIG net of certain amounts it can retainas
a counter claim. The receipt of the refund, net of obligations to AIG and corresponding U.S. tax effects, is expected to result in a $30 million charge to
net income and a slight decrease in the Company’s overall effective tax rate in the first quarter of 2013.
Disposition and Pending Acquisition
See Note 3 for discussion of the MetLife Bank Divestiture.
On February 1, 2013, MetLife, Inc. announced that it has entered into a definitive agreement with Banco Bilbao Vizcaya Argentaria, S.A. (“BBVA”)
and BBVA Inversiones Chile S.A. (“BBVA Inversiones,” and, together with BBVA, the “BBVA Sellers”) to acquire Administradora de Fondos de Pensiones
Provida S.A. (“Provida”), the largest private pension fund administrator in Chile by assets under management and number of contributors. Under the
terms of the agreement, MetLife will conduct a public cash tender offer for all of the outstanding shares of Provida, and the BBVA Sellers have agreed to
transfer their 64.3% stake to MetLife. Assuming all publicly-held shares are tendered, the purchase price, which MetLife, Inc. and certain of its
subsidiaries will fund from their existing cash balances, would be approximately $2 billion. The transaction is anticipated to close in the third quarter of
2013, subject to receipt of certain regulatory approvals and other customary conditions.
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