now loading...
Wealth Asia Connect Middle East Treasury & Capital Markets Europe ESG Forum TechTalk
Mondelez to buy majority stake in Vietnam company
Nasdaq-listed snack maker Mondelez International has agreed to acquire an 80% stake in Vietnam’s Kinh Do Corporation for US$370 million. The transaction will take place after Kinh Do has completed its previously announced restructuring
Gita Dhungana 11 Nov 2014

Nasdaq-listed snack maker Mondelez International has agreed to acquire an 80% stake in Vietnam's Kinh Do Corporation for US$370 million.

 

The transaction will take place after Kinh Do has completed 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 called BKD.

 

Under the proposed transaction, Mondelez will make an investment of 7.846 trillion dong (US$370 million) for 80% of the shares of the restructured snacks business.

 

The deal, which is subject to approval by Kinh Do's shareholder and certain other conditions, is expected to close in the second quarter of 2015.

 

Kinh Do's board of directors will propose the transaction to its shareholders at the next EGM scheduled on December 1 2014.

 

"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," said Tim Cofer, Mondelez's executive vice-president and president for Asia-Pacific and Eastern Europe, Middle East and Africa, in a statement. "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 is Vietnam's leading confectionary company with a diversified portfolio of brands built over the past 21 years. Throughout its extensive history, it has built a market leading presence in a wide range of confectionary products, cakes, buns, moon cakes, cookies and ice cream. Mondelez International is one of the world's leading snacks companies, with brands including Oreocookies, Ritz crackers andCadburychocolate, and combined net revenue of over US$5 billion in the Asia-Pacific region.

 

Headquartered in Singapore, Mondelez in Asia-Pacific operates in over 14 countries including Australia, China, Hong Kong, Indonesia, India, Japan, Malaysia, New Zealand, Philippines, Taiwan and Vietnam.

 

Standard Chartered acted as the M&A adviser to Kinh Do.

 

 

 

Conversation
Mildred Chua
Mildred Chua
managing director and group head of syndicated finance
DBS
- JOINED THE EVENT -
In-person roundtable
Finding opportunity amid volatility
View Highlights
Conversation
Donald Amstad
Donald Amstad
global head of client growth
abrdn
- JOINED THE EVENT -
Webinar
APAC Climate Change Progress & Obstacles in 2022
View Highlights