Shareholders of Cadbury Nigeria Plc have approved the conversion of an outstanding intercompany loan of $7.718 million (N7.036 billion) owed to its majority shareholder, Cadbury Schweppes Overseas Limited, to equity.
The shareholders gave Cadbury Nigeria the nod at an Extraordinary General Meeting (EGM), which took place recently in Lagos.
Cadbury Schweppes Overseas Limited, an entity currently owned by Mondelēz International Inc, holds a 74.97 per cent stake in Cadbury Nigeria, while the remaining shares are held by a diverse group of indigenous, individual, and institutional investors.
Cadbury Nigeria had earlier communicated the proposal to the Nigerian Exchange Limited (NGX) and the investing public. The shareholders’ approval at the EGM now means that the loan would be converted into equity by the allotment of 402.083 million ordinary shares of 50 kobo each to Cadbury Schweppes Overseas Limited. Shareholders also approved the Company’s proposal for increase of its share capital from N939.101 million to N1.140 billion.
In a statement, managing director, Cadbury Nigeria, Oyeyimika Adeboye attributed this decision to the challenges faced in sourcing US dollars to repay the Company’s foreign currency-denominated loans, due to persistent foreign currency scarcity experienced in the country.
Cadbury Nigeria Plc, a publicly quoted company, is the pioneer cocoa beverage manufacturer offering some of the most loved brands in the country. Cadbury Nigeria is a 74.97 per cent-owned subsidiary of Mondelēz
