The shareholders of Cadbury Nigeria Plc on Friday approved the conversion of an outstanding inter-company loan of $7.72 million, or N7.04 billion, owed to its majority shareholder, Cadbury Schweppes Overseas Limited, to equity.
The shareholders gave Cadbury Nigeria management the nod at an Extraordinary General Meeting (EGM) held in Lagos.
Cadbury Schweppes Overseas Limited, an entity currently owned by Mondelez 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.
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 to increase its share capital from N939.1 million to N1.14 billion.
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.
Cadbury Nigeria Plc is a subsidiary of Cadbury Schweppes Overseas Limited, an entity controlled by Mondelēz International Inc.