Stocks & Shares Update For Estate Practitioners: ‘Ketchup and Cheese’

6th July 2015 saw the launch on the stock exchange of a merger of two US giants of the savoury foods world:

Heinz and Kraft Foods Group, Inc now trade on the NASDAQ as Kraft Heinz Company.

Kraft Foods Group Inc stock is no longer traded

Instead, shareholders receive an identical number of shares in Kraft Heinz Company, and will also be paid a special dividend when they exchange the old shares for the new.

Why does it matter, you might ask?

UK estates dealing with share portfolios increasingly find that they include US-traded shareholdings like this. Kraft is related by mergers and spinoffs to the Cadburys securities ‘family tree’ (see in brief below for a potted history). Finders International can help estates dealing with these shares: in order to get them changed from ‘old’ Kraft into ‘new’ Kraft Heinz, and get the special dividend, shareholders will have to complete a Letter of Transmittal. If the registered account holder’s name needs to be changed (for instance, because the account holder has passed away), the Letter of Transmittal would require a Medallion Guarantee stamp.

From Cadbury to Heinz: in brief

  • Cadbury merged with Schweppes to form Cadbury Schweppes plc.
  • A demerger of Cadbury Schweppes plc created a new shareholding: Dr Pepper Snapple Group, Inc.
  • Cadbury plc was bought by Kraft, and Cadburys shareholders acquired Kraft Foods, Inc shares.
  • Kraft changed its name to MondelÄ“z International, Inc, and created a spin off holding called Kraft Foods Group, Inc.
  • As of 6th July 2015, Kraft Foods Group, Inc is no longer trading. Shareholders receive the same number of shares in Kraft Heinz Company and a special cash dividend.

We’re here to help

If you are dealing with an estate and are unsure of the significance of this merger, Finders International’s Asset Services Manager, Louise Levene, is on hand for a free, informal discussion about how or if this affects your estate. Email [email protected] or telephone 0800 085 8796 (freephone) or +44 (0) 207 490 4935.

This article was submitted to be published by Finders International as part of their advertising agreement with Today’s Wills & Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills & Probate.

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