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Kraft gives timetable for grocery business spin-off
August 2nd, 2012
NORTHFIELD, Ill. – Kraft Foods Inc. plans to spin off its North American grocery business on Oct. 1.
The packaged foods giant said Thursday that the spin-off of Kraft Foods Group Inc. to shareholders is scheduled for 5 p.m. EST on Oct. 1, with the final effective date and terms of the spin-off subject to the approval of the group's board.
At the time of the spin-off, each of the company's shareholders entitled to receive shares of Kraft Foods Group will get one share of Kraft Foods Group for every three shares of Kraft Foods Inc. The record date is expected to be in mid-September.
Kraft announced last August that its board aims to create two independent public companies: a global snacks business with revenue of about $31 billion, and a North American grocery business with sales of about $17 billion.
In May, shareholders approved the name Mondelez International Inc. for the snacks business, while the grocery company will retain the Kraft brand as Kraft Foods Group Inc.
Irene Rosenfeld, currently chairman and chief executive officer of Kraft Foods Inc., will be chairman and CEO of Mondelez International. Tony Vernon, currently executive vice president and president of Kraft Foods North America, will become CEO of Kraft Foods Group.
Starting Oct. 2, Kraft Foods Group will begin to trade on Nasdaq Global Select Market under the ticker symbol KRFT, and Kraft Foods Inc. will change its ticker symbol to MDLZ to reflect the new Mondelez company name. The current ticker symbol, KFT, will be retired.