(Oct 21): Investment firm JAB agreed to acquire Mondelez International Inc’s stake in JDE Peet’s NV for €2.16 billion (RM10.1 billion), increasing its control over the struggling coffee maker as its shares trade near all-time lows.

 JAB, which manages the billionaire Reimann family’s money, said it will buy 86 million shares in JDE Peet’s for €25.10 per share, according to a statement, a 32% premium on Friday’s close. 

On Monday shares in JDE Peet’s, which also announced a new chief executive, rose as much as 16%. 

JAB has struggled to lift the Douwe Egberts maker’s shares since a listing four years ago. JDE Peet’s stock touched a record low this month as demand for home-brewed coffee receded to pre-pandemic levels and the company had to contend with management upheaval following the departure of its CEO in April. The stock is still down 10% this year, putting it on track for its fourth annual loss since its listing.

JAB built JDE Peet’s from a series of acquisitions, designed to challenge global coffee leader Nestle SA. Earlier this year, the investment holding said it would expand in insurance after several of its big consumer bets performed poorly.

Chief executive officer Fabien Simon left in April and was followed by two interim replacements. On Monday the company named Rafael Oliveira as its new boss. Oliveira joins after a decade at Kraft Heinz Co. 

The new CEO “should boost certainty and investor commitment,” Jefferies International analyst Feng Zhang said in a note to clients, adding that he expects a clearer strategy.

Following Monday’s move, JAB’s stake in the Amsterdam-based coffee company will rise to 68%, it said in the statement. 

It has also distributed shares of JDE Peet’s to more than 70 limited partners of JAB Consumer Partners, its consumer fund, significantly increasing the free float of the coffee producer.

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