Mondelez International Strengthens its Position in Asia Pacific
Mondelez International is acquiring an 80% stake in the snacks business of Kinh Do Corporation, Vietnam’s leading confectionery company, in a deal worth $370 million. Mondelez’s landmark investment in Vietnam’s fast-moving consumer goods industry will give it access to Kinh Do’s manufacturing capabilities and comprehensive distribution network. Kinh Do’s well-loved brands include Kinh Do mooncakes and biscuits, Cosy biscuits, Solite soft cakes and AFC crackers. These brands complement Mondelez International’s portfolio of iconic snacks brands in the region, including Oreo cookies, Ritz crackers and Cadbury chocolates.
“Our significant investment in Kinh Do and Vietnam is a perfect fit for our growth strategy in Asia Pacific, strengthening our core snacking categories in a high-growth dynamic market,” says Tim Cofer, Executive Vice President and President, Asia Pacific and Eastern Europe, Middle East & Africa for Mondelez International. “Kinh Do is a successful Vietnamese business with decades of heritage. Its deep understanding of local consumers, the commercial environment and complex routes to market in Vietnam, provide a strong foundation to grow the business.”
Kinh Do Corporation’s board of directors will propose the transaction to shareholders at the Kinh Do Corporation Extraordinary General Meeting in December 2014. Prior to the investment by Mondelez International, Kinh Do Corporation will complete its previously announced restructuring to consolidate its snacks division (except for the Kido ice cream and dairy division and its retail bakeries) into one business entity, BKD. Under the proposed transaction, Mondelez International will make an initial investment of VND7.846 trillion ($370 million) in exchange for 80% of the shares of the restructured snacks business.
Mondelez International has an option to acquire, and KDC has an option to sell, the remaining shares of BKD. The option is exercisable any time after 12 months from the completion of the 80 percent investment.
The proposed transaction is expected to close in the second quarter of 2015, subject to approval at the Kinh Do Corporation Extraordinary General Meeting and certain other regulatory requirements.
