Cadbury Nigeria’s shareholders approve loan conversion to equity
Shareholders of Cadbury Nigeria Plc have approved the conversion of an outstanding intercompany loan of $7.718 million (₦7.036 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 on 8 February 2024 in Lagos.
Cadbury Schweppes Overseas Limited, an entity currently owned by Mondelēz International Inc, holds a 74.97% 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 402,082,657 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 ₦939,100,981 to ₦1,140,142,309.50.
In a statement, Cadbury Nigeria’s Managing Director, 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.
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2023 net revenues of approximately $36 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate’s Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate.
Cadbury Nigeria Plc (CNP), 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%-owned subsidiary of Mondelēz International, a global snacking powerhouse with an unrivalled portfolio of brands. The remaining 25.03% of shares are held by a diverse group of indigenous, individual and institutional investors. A front-runner in beverages, confectionery and gum, Cadbury Nigeria’s quality products–Bournvita, Hot Chocolate 3 in 1, TomTom, Buttermint, and Clorets–are market leaders in their respective consumer segments.
