JDE Peet's Shares Surge

By Leo Marchandon

(Reuters) – Shares in Dutch coffee maker JDE Peet's surged more than 16% after German conglomerate JAB announced on Monday its plan to increase its majority stake to 68% by acquiring all of Mondelez (NASDAQ:MDLZ)'s shares in a €2.2 billion ($2.4 billion) deal.

JAB will pay €25.10 per share for Mondelez's 86 million shares, representing a 17.6% stake in JDE Peet's, the owner of brands like Douwe Egberts and Kenco.

Additionally, JAB will distribute 9% of JDE Peet's share capital to limited partners of JAB Consumer Partners, increasing the free float to 32%.

"We are fully committed to remaining an anchor shareholder of the world's leading pure-play coffee and tea company," JAB stated.

JDE Peet's also announced a new CEO, Rafael Oliveira, effective Nov. 1. Oliveira has spent the last decade in various roles at Kraft Heinz (NASDAQ:KHC).

Shares in JDE Peet's rose 15.6% as of 0840 GMT after declining 22% this year amid concerns over EU sanctions affecting its business in Russia and the absence of a CEO.

Analysts at JP Morgan noted, "The visibility on the new CEO and buyout of the Mondelez stake eliminates an overhang on the stock."

Oliveira replaces CFO Scott Gray, who filled in after interim CEO Luc Vandevelde's resignation in August, which was attributed to "unforeseen matters that required his immediate attention."

($1 = 0.9213 euros)