JAB Strengthens Hold On Coffee Company JDE Peet's As Mondelez Sells Off 86M Shares

Mondelez International, Inc. MDLZ shares are trading lower on Monday. The company agreed to sell 86 million shares of JDE Peet’s to JAB for 25.10 euros ($27.16) per share.

In addition, JAB has distributed shares of JDE Peet’s to over 70 limited partners of JAB Consumer Partners (JCP), notably increasing the free float of JDE Peet’s. This marks the final distribution of JDE Peet’s shares to JCP investors.

JAB is an investment holding company that invests in insurance and consumer-focused industries with attractive long-term dynamics.

Joachim Creus, JAB Managing Partner, Vice Chairman, and CEO, stated, “JAB has strong conviction in the resilience of the global coffee sector and the long-term value creation prospects of JDE Peet’s. We are fully committed to remaining an anchor shareholder of the world’s leading pure-play coffee and tea company.”

In total, JAB distributed 43 million shares, accounting for 9% of JDE Peet’s total issued and outstanding share capital, which raised the free float to 32%. After these transactions, JAB’s ownership stake in JDE Peet’s will rise to 68%.

Last week, Mondelēz International, in collaboration with SKUx, pioneered the first real-world public adoption of distributed ledger technology (DLT) to track the supply chain of consumer-packaged goods and facilitate digital payments.

Mondelez will report third-quarter 2024 results on October 29, 2024.

Investors can gain exposure to the stock via iShares U.S. Consumer Staples ETF IYK and First Trust Nasdaq Food & Beverage ETF FTXG.

Price Action: MDLZ shares are down 1.27% at $70.67 at the last check Monday.

Photo by viewimage on Shutterstock

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