Hershey has revealed it plans to acquire full control of Shanghai Golden Monkey Food Joint Stock Co., as further details of its investment in the Chinese confectioner were announced.
The US candy giant said yesterday (19 December) it would buy 80% of privately-owned Shanghai Golden Monkey for an undisclosed sum.
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Initial details of the deal, which is expected to close in the second quarter of next year, were made in a press announcement.
In an 8-K filing made to the US Securities and Exchange Commission, Hershey revealed the price it would pay for the 80% of Shanghai Golden Monkey, or SGM, and plans to increase its stake.
If regulators pass the deal, Hershey will pay SGM’s owners, including chairman and general manager Zhao Gisan, CNY3.54bn (US$583m) for the initial 80% stake.
Hershey said the filing it expects to complete that acquisition to close in “mid-2014”. The companies have agreed Hershey will buy the remaining 20% a year later for CNY2.42bn.
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