Sadia S.A. - Provided by FIRB - Financial Investor Relations Brasil
FORM 6-K
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2006

Commission File Number 1-15184

SADIA S.A.
(Exact Name as Specified in its Charter)

N/A
--------------------------------------
(Translation of Registrant's Name)

Rua Fortunato Ferraz, 365
Vila Anastacio, Sao Paulo, SP
05093-901 Brazil
(Address of principal executive offices) (Zip code)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F   [X]                    Form 40-F    [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):    [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):    [   ]

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes   [    ]                           No   [X]

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused the Report to be signed
on its behalf by the undersigned, thereunto duly authorized.

Date: Feb 02, 2006

SADIA S.A.


By:/s/ Luiz Gonzaga Murat Junior
----------------------------------
Name: Luiz Gonzaga Murat Junior
Title: Chief Financial Officer



  Sadia S.A.
Rua Fortunato Ferraz, 365 – 2° andar
São Paulo, SP – Brasil
05093-901
tel. +55 11 2113-3552
www.sadia.com.br

SADIA S.A.

CNPJ No. 20.730.099/0001-94

ANNOUNCEMENT TO SHAREHOLDERS

INTEREST ON EQUITY PAYMENT

SADIA S. A., announces to its shareholders that, on December 22, 2005, the Board authorized the payment of interest on equity related to 2005 earnings, being R$ 0, 17452 per common share and per preferred. The interest on equity will be calculated according to the minimum dividend required by Brazilian securities law, to be approved at the next general shareholders’ meeting. The corresponding credit will be posted in the Company’s accounting records on December 31, 2005 in the shareholders’ names. Payment will be made on February 16th, 2006, based on the record date at December 29, 2005, and retaining 15% (fifteen per cent) income withholding tax , pursuant to Paragraph 2 of Article 9 of Law No. 9.249/95, except for those shareholders that are legally recognized as tax-exempt investors. Shares shall be traded on the São Paulo, New York and Madrid Stock Exchanges, without the right to such interest on equity, as of January 02, 2006, including that date.

Shareholders possessing bank accounts will have the amount automatically credited on the above mentioned payment date. All other investors will receive a “Dividend Credit Notice” by mail, at those addresses on file with Banco Bradesco.

Tax-exempt investors which are not subject to income withholding tax must comply with applicable law by submitting the required documents by January 20th, 2006 to the following address: Banco Bradesco, Departamento de Ações e Custódia, Prédio Amarelo - 2º andar - Cidade de Deus, Osasco – SP – Brazil CEP 060029-900.

 

São Paulo-SP, December 22, 2005

 

SADIA S. A.
Luiz Gonzaga Murat Júnior
Chief Financial Officer