Mondelez International to Acquire Majority Stake in Vietnam's Leading Snacks Company
11 Nov 2014 --- Mondelez International, the world's pre-eminent maker of chocolate, biscuits, gum and candy, announced that it will acquire an 80 percent stake in Kinh Do Corporation's category-leading snacks business in Vietnam, subject to the approval of Kinh Do Corporation's shareholders.
The landmark investment in Vietnam's fast-moving consumer goods industry will leverage Kinh Do's manufacturing capabilities, comprehensive distribution network and some of the best Vietnamese talent in the industry. 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," said Mr. 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. Our companies share a passion for making brands people love, so I'm tremendously excited about what our businesses can achieve together."
"The love and trust of customers along with the efforts of our employees over the past two decades have made Kinh Do's brands what they are today," said Mr. Tran Kim Thanh, Chairman of Kinh Do Corporation. "We're proud to be able to bring Kinh Do to the next level of growth and to offer new tastes to consumers – not only in Vietnam but the world."
Mr. Tran continued, "Today's announcement is also firm recognition of Kinh Do as a well-loved brand that has earned the trust of consumers over the years. The proposed transaction is aligned to our business direction and will help us to successfully deliver our new strategy."
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 (approx. US$370 million at current exchange rates) in exchange for 80 percent 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.
