Summary
Mondelez International announced a strategic move concerning its investment in Keurig Green Mountain (KGM). As part of JAB Holding Company's acquisition of KGM, Mondelez intends to exchange a portion of its equity in Jacobs Douwe Egberts (JDE) for equity in the new KGM holding company. This transaction will not involve any new cash investment from Mondelez.
Key Highlights
- 1Mondelez International (MDLZ) is involved in a strategic equity exchange related to the acquisition of Keurig Green Mountain (KGM) by JAB Holding Company.
- 2MDLZ will exchange a portion of its equity in Jacobs Douwe Egberts (JDE) for equity in the new KGM holding company.
- 3No new cash investment will be made by MDLZ in this transaction.
- 4MDLZ's equity ownership in JDE is expected to decrease from 43.5% to approximately 26.5% after the share exchange.
- 5MDLZ anticipates its interest in the new joint venture will be somewhat lower than its reduced stake in JDE.
- 6The company expects no significant changes to its governance rights in JDE and similar governance rights in the new joint venture.
- 7The transaction is subject to closing and finalization of investment terms.