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 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 402,082,657 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.