8-KOther EventsExhibits & Filings

Mondelez International, Inc. 8-K Report, Corporate Update (Aug 14, 2012)

Filed August 14, 2012For Securities:MDLZ

Summary

This Form 8-K filing from Kraft Foods Inc., dated August 14, 2012, announces a significant strategic decision: the approval of a spin-off of its North American grocery business. This business will be reorganized into a new, independent, publicly traded company named Kraft Foods Group, Inc. The move is designed to separate the global snacks business from the North American grocery operations, allowing each entity to pursue more focused strategies and unlock shareholder value. Investors should note the key dates associated with this transaction. The spin-off is structured as a pro rata distribution of Kraft Foods Group common stock to existing Kraft Foods Inc. shareholders. The record date for eligibility is September 19, 2012, and the distribution is scheduled for October 1, 2012. Shareholders will receive one share of Kraft Foods Group for every three shares of Kraft Foods Inc. held on the record date. This separation is a material event for Kraft Foods Inc. (which will likely continue as the global snacks entity, later becoming Mondelez International) and its shareholders.

Key Highlights

  • 1Kraft Foods Inc. Board of Directors approved the spin-off of its North American grocery business.
  • 2The North American grocery business will become a new, independent company, Kraft Foods Group, Inc.
  • 3The spin-off will be executed as a pro rata distribution of Kraft Foods Group common stock to Kraft Foods Inc. shareholders.
  • 4Shareholders will receive one share of Kraft Foods Group for every three shares of Kraft Foods Inc. held.
  • 5The record date for the stock distribution is September 19, 2012.
  • 6The distribution of Kraft Foods Group stock is scheduled for October 1, 2012.
  • 7This event marks a significant strategic restructuring, separating the global snacks business from the North American grocery operations.

Frequently Asked Questions

This 8-K filing announces that Kraft Foods Inc.'s Board of Directors has approved the spin-off of the company's North American grocery business into a new, independent entity called Kraft Foods Group, Inc. This move aims to create two distinct, publicly traded companies with focused strategies.

Shareholders will receive shares of Kraft Foods Group, Inc. through a pro rata distribution. For every three shares of Kraft Foods Inc. common stock they own as of the close of business on September 19, 2012 (the Record Date), they will receive one share of Kraft Foods Group, Inc. common stock.

The distribution of Kraft Foods Group, Inc. common stock is scheduled to occur on October 1, 2012, at 5:00 p.m. EDT, to shareholders of record as of September 19, 2012.

The filing indicates that the North American grocery business is being spun off. The remaining entity of Kraft Foods Inc. is expected to focus on its global snacks business. This remaining entity would later become Mondelez International.