Cadbury Nigeria Converts N7.04bn Loan to Equity, Lists Additional 402 Million Shares


Cadbury Nigeria Plc has successfully converted an intercompany loan of approximately N7.04 billion into equity, resulting in the listing of 402,082,657 ordinary shares at 50 Kobo each, priced at N17.50 per share, on the Nigerian Exchange Limited (NGX).

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According to the weekly market report released by NGX on Friday, these shares have been added to the daily official list of the local bourse. “With this listing of the additional 402,082,657 ordinary shares, the total issued and fully paid-up shares of Cadbury has now increased from 1,878,201,962 to 2,280,284,619 ordinary shares of 50 Kobo each,” the report stated.

In February, Cadbury Nigeria Plc’s shareholders approved the conversion of an outstanding intercompany loan of $7.72 million (N7.04 billion) owed to its majority shareholder, Cadbury Schweppes Overseas Limited, into equity. An explanatory statement filed with NGX in January revealed that between February 2021 and September 2023, Cadbury Schweppes Overseas provided $23 million to Cadbury Nigeria to settle outstanding third-party loans used to finance raw material imports and other input costs.

Managing Director of Cadbury Nigeria, Oyeyimika Adeboye, explained that the debt-to-equity decision was driven by the challenges in sourcing dollars to repay the company’s foreign currency-denominated loans due to persistent foreign currency scarcity in the country.

In a previous interview, Managing Director of Parthian Partners, Oluseye Olusoga, remarked, “The Cadbury situation is not that bad for local investors. If you owe money, it comes with a fine. That debt could just keep ballooning. So, this is like a cure. The question is, how do you keep it from growing again, so it does not become a liability? We need to focus on how to get local substitutes and how we export more of what we manufacture.”

Cadbury Schweppes Overseas Limited, now owned by Mondelēz International Inc, holds a 74.97% stake in Cadbury Nigeria, with the remaining shares owned by a diverse group of local individual and institutional investors. With this conversion, Cadbury Schweppes Overseas’ shareholding in Cadbury Nigeria will increase further.

Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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