Kraft Foods today (4 August) announced the final exchange ratio for the tax-efficient split-off of its Post cereals business.

The exchange ratio, set at 0.6606 shares of Cable Holdco common stock for each Kraft common share, was part of a previously announced agreement on 15 November to distribute and merge its Post cereals business into Ralcorp.

The split-off transaction is in connection with the merger of Cable Holdco, a wholly owned subsidiary of Kraft that will own certain assets and liabilities of the Post cereals business, and a subsidiary of Ralcorp Holdings.

In the split-off transaction, Kraft shareholders have the option to exchange their shares of Kraft common stock for shares of Cable Holdco common stock which will then immediately be exchanged for shares of Ralcorp common stock on a one-for-one basis following the merger of Cable Holdco and a Ralcorp subsidiary.

The exchange offer will expire at 8am New York City time, on 4 August 2008  and will coincide with the closing of the merger of the Post cereals business and Ralcorp.

The transactions are subject to customary closing conditions.

A total of 30,466,805 shares of Cable Holdco are being offered in exchange for Kraft common stock, subject to adjustments in certain circumstances.