no, they are saying that the 20 cent dividend will be deducted...

no, they are saying that the 20 cent dividend will be deducted from the $1.55 offer. so the offer will comprise of $1.35 plus 20 cent dividend (with 8.5 cents franking credit).
Mind you, they haven't actually said they are definitely paying the 20 cent dividend yet - the scheme of arrangement just allows for it, and it makes sense with their big franking account balance.