USA – Mondelēz International, a snacks company, has agreed to sell part of its stake in Keurig Dr Pepper, a producer and distributer of beverages, to a financial services firm for a total consideration of approximately US$362.7 million.
The global snack and confectionery company became a minor stakeholder in Keurig Green Mountain in 2016 after it exchanged a portion of its ownership in Jacobs Douwe Egberts for a 24% stake.
Following the merger between Keurig Green Mountain and Dr Pepper Snapple in 2018, Mondelēz’ existing stake translated into a 13-14% share in the combined company. At the time, Mondelēz said that it did not intend to invest fresh capital into the new venture.
As part of the agreement, Mondelēz was not allowed to sell any of its shares in the newly-formed Keurig Dr Pepper for six months and had the right to nominate two directors to the new company’s board of directors.
As part of the deal, Mondelēz will sell approximately 12.5 million shares in Keurig Dr Pepper at a price of US$29 per share. Following the completion of the transaction, Mondelēz will own 158.2 million shares in the beverage company, representing approximately 11.2%.
According to the filing, the share sale was described as an opportunist sale transaction based on market conditions.
Following the recent transaction, JAB Holdings will continue to own the remaining, majority stake in Keurig Dr Pepper.
Keurig Dr Pepper also announced that it will transfer its stock exchange listing from the New York Stock Exchange to the Nasdaq Stock Market (Nasdaq) later this month, joining the largest innovation leaders on the exchange.
“Listing on Nasdaq is an important milestone in Keurig Dr Pepper’s evolution as a modern beverage company with a diverse and widely-held shareholder base,” said Keurig Dr Pepper Chairman and CEO Bob Gamgort. “We are pleased to be joining the ranks of the world’s most innovative companies on Nasdaq.”
Upon listing, Keurig Dr Pepper will be among the largest companies on Nasdaq. The Nasdaq-100® index includes 100 of the largest domestic and international non-financial companies listed on the exchange based on market capitalization, and Keurig Dr Pepper would currently rank within the top 50 of this prestigious group.
The Company will retain the “KDP” ticker with trading on the Nasdaq expected to begin on September 21, 2020.
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