Shareholders of Cadbury Nigeria Plc have granted approval for the conversion of an outstanding intercompany loan amounting to N7.03 billion ($7.71 million) owed to its principal shareholder, Cadbury Schweppes Overseas Limited, into equity.
The decision was reached during the extraordinary general meeting held on February 8, 2024, according to a corporate filing on the Nigerian Exchange Limited (NGX).
Cadbury Nigeria outlined that as part of the approved measure, it will allocate 402,082,657 ordinary shares of 50 kobo each to Cadbury Schweppes Overseas in lieu of the debt.
These newly issued shares will carry equal rights with the existing ordinary shares in the company. The price per share is set at ₦17.50, reflecting the share price as of the close of trading on December 27, 2023.
Additionally, the stakeholders endorsed the increase of Cadbury Nigeria’s share capital from N939.1 million to N1.14 billion through the issuance of the aforementioned 402,082,657 ordinary shares of 50 kobo each.
The company’s directors have been granted authority to take the necessary steps to implement this increase.
The company’s statement highlighted, “Board of Directors are authorised to take all such lawful steps, to pass all requisite resolutions and do all such other lawful acts and/or things as may be necessary, incidental, supplemental, consequential to giving effect to the resolutions above including listing the new shares on the stock exchange.”
