5. 11. 2018

KGI Urges 3G Capital and Berkshire Hathaway to Take Kraft Heinz Private at $80 per Share

Press release

TheCentral Europe based investment firm, previously known as Arca Capital, plansto meet with key stakeholders to advocate for a fair price buyout of KraftHeinz in the aftermath of the Q3 2018 earnings report citing the difficulty ofreconciling critical investments with public stockholder pressures

PRAGUE, November 5, 2018 — Krupa Global Investments (“KGI”), one of the largest institutional shareholders of The Kraft Heinz Company, is reiterating its calls for a $80 per share buyout of the food conglomerate in the aftermath of the lower than expected Q3 2018 earnings report released by the company on November 1st. Krupa Global Investments owns approximately $100 Million of Kraft Heinz stock. The renewed call to action comes in the form of an open letter from KGI Chairman Pavol Krupa to board members and shareholders of Kraft Heinz. The letter in its entirety can be found here.

The significant stock price decline after the Q3 2018 earnings report vindicates KGI’s contention made in September through an open letter and through heavily publicized demonstrations in New York and Omaha that many of the investments that are necessary for Kraft Heinz to be successful long-term are not reconcilable with public stockholder pressures. Kraft Heinz stock has underperformed the S&P 500 by approximately 32 percent and publicly traded food stocks by approximately 22 percent as of Friday November 2nd.

“This is a critical time for the food industry where all food companies must make key investments to gain market share and create innovative, high-margin products. These investments will be expensive and will not typically pay short term dividends. Thus, we fear the company’s market cap will continue to take hits while public shareholders lose their savings, retirement funds and college funds. Thus, we see a mutual win in a fair priced buyout of public shareholders at $80 per share. This transaction would benefit all involved. Mr. Buffett of Berkshire Hathaway and Mr. Lemann of 3G Capital are long-term thinkers who can guide Kraft Heinz through its short and medium term challenges to long term success. Meanwhile, public investors would be able to recuperate their significant losses on what most believed was a safe dividend stock. We look forward to presenting our point of view in upcoming meetings with all relevant stakeholders. We strongly believe we can build a consensus in this matter and through it save the iconic Kraft Heinz Company,” said Pavol Krupa, Chairman of Krupa Global Investments.

Krupa Global Investments is known for taking an activist approach in leveraging necessary reforms at fundamentally strong companies. Pavol Krupa, Chairman of Krupa Global Investments, is known for his unwavering support of ordinary investors, having made his fortune fighting for good corporate governance in Central and Eastern Europe. Mr. Krupa was recently awarded state honors by Czech President Milos Zeman for his fight against economic corruption in the Czech Republic and abroad. “I believe this award will be motivation and inspiration for all who want to fight against crime, robbery and corruption. In all of our endeavors, we fight for ordinary investors and ordinary people who cannot defend themselves,” said Krupa.