At a General Meeting held in Lagos, shareholders of Cadbury Nigeria Plc endorsed the conversion of an outstanding intercompany loan of $7.718 million (N7.036 billion) owed to its majority shareholder, Cadbury Schweppes Overseas Limited, into equity.
Additionally, shareholders gave the green light to the company’s proposal to increase its share capital from N939.1 million to N1.14 billion.
Cadbury Schweppes Overseas Limited, currently owned by Mondel–z International Inc., holds a 74.97 percent stake in Cadbury Nigeria, while the remaining shares are held by a diverse group of indigenous, individual, and institutional investors. The approval of the shareholders means that the loan will be converted into equity through the allotment of 402.08 million ordinary shares of 50 kobo each to Cadbury Schweppes Overseas Limited.
This strategic move aims to deleverage Cadbury Nigeria’s balance sheet, reducing pressure on cash flows and enhancing liquidity. The company anticipates that improved liquidity could be directed towards productive investments or returned to shareholders through dividends.
Source: Vanguard