MDLZ's Stake In Keurig Dr Pepper Down To 8.4%, With Continuation Of Two KDP Board Seats

(RTTNews) - Keurig Dr Pepper Inc. (KDP) said that JAB majority-owned subsidiary Maple Holdings B.V. and Mondelez International Inc. (MDLZ) will sell an aggregate of 60 million shares through a secondary offering.

Mondelez will sell 40 million shares, bringing its stake in KDP down to about 8.4%, with continuation of two KDP board seats.

Maple will sell 20 million shares for the benefit of its minority partners.

In addition, JAB indicated that JAB and Maple will convert the final portion of Maple's minority partners' shares into shares held directly in KDP and will distribute about 119 million shares of KDP common stock, representing about 8.5% of KDP's outstanding common stock, currently held by Maple, to such minority holders.

Following the transactions, Maple will be renamed JAB Bevco and, through JAB Bevco, JAB and its affiliates will hold about 34% of KDP's outstanding common stock.

Upon the completion of the transactions, KDP's public float will increase to approximately 58%, as compared to approximately 13% at the time of the completion of the merger of Keurig Green Mountain and Dr Pepper Snapple Group in 2018.

As per the terms of the deal, the distributed shares will be subject to a lock-up arrangment with Maple that will ratably apply for a period from six to twelve months.

In addition, the remaining shares held by Maple and MDLZ and the shares held by BDT Capital Partners will be subject to a 90-day lock-up agreement with the underwriters.