Kraft Foods today (4 August) closed its exchange offer for the sale of its Post Cereals business to a subsidiary of private-label food maker Ralcorp Holdings.
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The deal, reached in November, will see Kraft first split off or spin off Post Cereals through a subsidiary, Cable Holdco. The business will then combine with Ralcorp.
As part of the spin-off, Kraft shares can be exchanged for Cable Holdco shares, which will then be exchanged for Ralcorp shares on a one-for-one basis following the merger.
Kraft shareholders that tendered their Kraft shares as part of the offer received 0.6606 shares of Ralcorp for each Kraft share exchanged.
Kraft said in a filing that it has exchanged 46m common shares of Kraft for 30.5m shares of Cable Holdco.
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By GlobalDataKraft said EPS will be reduced by $0.07 per share each year when the Post cereals business is classified as discontinued operations. This will occur in the third quarter.
