Mondelez acquires 80% in Kinh Do for $370m

US-based confectionery conglomerate Mondelez International Corp is planning to acquire a majority stake (80%)  in the snack unit of Kinh Do Corporation – the Binh Duong Kinh Do Corp-  through an investment of $370 million.

Subject to Kinh Do shareholders approval, Mondelez will have an opportunity to purchase the remain 20% stake in another 12 months, said a company official.

Tim Cofer, executive vice president of Mondelez (Asia Pacific and other regions), emphasised that this deal is  “very important and vital” to the company as Kinh Do would provide Mondelez with a ready distribution network in Vietnam– a challenging market, which is a mix of supermarkets and local kiosks in the suburban areas.  “Deep understanding of local customers, commercial environment, and complex routes to market in Vietnam, provide a strong foundation to grow the business of Mondelez” he added.

Kinh Do would have to complete the restructuring of the snack unit, which it had announced earlier, prior to the closing of this transaction (the second quarter of 2015.)

The company will merge its factories and divisions relating to snack business into one entity – Binh Duong Kinh Do Corp (excluding the Kido ice cream, dairy products and retail bakeries). Currently, the snack businesses of Kinh Do Corp generate $175 million in annual sales of popular products like AFC crackers, Mooncakes, Cosy biscuits, etc.

Chairman Tran Kim Thanh, who is the founder of Kinh Do Corporation, started it in 1993 in the Ho Chi Minh City.  It is Vietnam’s largest confectionary company in terms of sales and production. Over the past 21 years, Kinh Do has established a diversified portfolio of category leading brands in products like biscuits, buns, cakes, mooncakes, ice cream, snacks, etc.

For the first six months of 2014, Kinh Do’s revenue was $41.3 million (VND 877 billion) with a net profit after tax of $4.76 million (VND 101 billion). In 2013,  total income of the company was $212.3 million (VND 4.5 trillion) with $23.6 million (VND 500 billion) in net profit after tax.

Mondelez International Inc is one of the world’s largest snacks companies with a market cap of $63 billion. It owns iconic brands such as Oreo, Cadbury and Ritz crackers.  In 2013, Mondelez’s revenue was $35 billion; it employs over 107,000 people and operates in 80 countries.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.