14/07/2008 08:53AM AEST
MELBOURNE (Dow Jones)--Toll Holdings Ltd. (TOL.AU), Australia's largest logistics provider, said Monday it will pay a special dividend of one share in its Virgin Blue Holdings Ltd. (VBA.AU) airline unit for each ordinary share held.
Toll, which holds a 63% stake in Virgin Blue, will distribute 648.1 million shares and continue to hold about 11 million shares in the Brisbane-based airline, it said in a statement.
A special share sale facility will be established to help the disposal of small holdings, Toll said.
After the special dividend, British businessman Richard Branson's Virgin Group (VGN.YY) will become the largest shareholder in the airline, holding 25.5%, Toll said.
There will be no change in Virgin Blue's management or strategy, the company said.
-By Andrew Harrison, Dow Jones Newswires; 61-3-9671-4323;
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