Mondelez International to acquire 80% stake in Kinh Do Corporation

Mondelez International will acquire 80% stake in Vietnam’s Kinh Do Corporation’s snacks business for $370m.

However, before this transaction, 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.

A statement from the company said that Mondelez International has an option to acquire and KDC has an option to sell the remaining shares of BKD. The option is also exercisable any time after 12 months from the completion of the 80% investment.

The company said that Kinh Do’s popular brands, including Kinh Do mooncakes and biscuits, Cosy biscuits, Solite soft cakes and AFC crackers would complement Mondelez’s portfolio of snacks brands in the region like Oreo cookies, Ritz crackers and Cadbury chocolates.

Mondelez International Asia Pacific and Eastern Europe, Middle East and Africa executive vice-president and president Tim Cofer said: "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."

"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."

Kinh Do Corporation chairman Tran Kim Thanh said: "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.

"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."

The proposed transaction which is subject to approval at Kinh Do Corporation Extraordinary General Meeting and certain other regulatory requirements is expected to close in the second quarter of 2015.