Mondelez to acquire majority stake in Vietnam’s leading snacks company
Mondelez International Inc., Deerfield, IL, will acquire an 80 percent stake in Kinh Do Corp.’s snacks business in Vietnam, subject to the approval of Kinh Do Corp.’s shareholders.
The landmark investment in Vietnam’s fast-moving consumer goods industry will leverage Kinh Do's manufacturing capabilities, distribution network and some of the best Vietnamese talent in the industry. Kinh Do’s brands include Kinh Do mooncakes and biscuits, Cosy biscuits, Solite soft cakes and AFC crackers. These brands complement Mondelez’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 and 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. Our companies share a passion for making brands people love, so I'm tremendously excited about what our businesses can achieve together.”
Kinh Do Corp.'s board of directors will propose the transaction to shareholders at the Kinh Do Corporation Extraordinary General Meeting in December. Prior to the investment by Mondelez, Kinh Do Corp. 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 will make an initial investment of VND7.846 trillion (approximately $370 million at current exchange rates) in exchange for 80 percent of the shares of the restructured snacks business. Mondelez 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.