JAB and Mondelēz to reduce stakes in Keurig Dr Pepper

Mondelēz International and JAB majority-owned subsidiary Maple Holdings are selling a total of 60 million shares held in Keurig Dr Pepper.

Conducted through a secondary public offering, the shares will be priced at $28.45, representing a total price of approximately $1.71 billion.

According to Keurig Dr Pepper, the transactions represent a major milestone in it becoming a widely held modern beverage company. 

Mondelēz will sell 40 million shares, reducing its ownership stake to approximately 8.4%. This follows the sale of 12.5 million shares earlier this year for a total consideration of approximately $362.7 million. The company will continue to maintain two seats on the board.

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

Maple has also indicated that it expects to convert the final portion of its minority partners’ shares in itself into shares held directly in KDP. It will distribute approximately 119 million shares of KDP common stock – representing approximately 8.5% of KDP’s outstanding common stock – to such minority holders. 

Following this transaction, Maple will be renamed JAB Bevco and, through JAB Bevco, JAB and its affiliates will hold approximately 34% of KDP’s outstanding common stock.

Upon the completion of the sales, 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.