In a significant move aimed at fortifying its financial standing, Cadbury Nigeria Plc has garnered approval from its shareholders to augment its share capital from N939.101 million to N1.14 billion. This pivotal decision was ratified during an Extraordinary General Meeting (EGM) convened on Feb. 8, as announced by Fola Akande, the Company’s Secretary, in a notification to the Nigerian Exchange Ltd. (NGX) in Lagos.
The proposed capital boost entails the creation of 402,082,657 ordinary shares valued at 50 kobo each. These newly created shares are set to possess equal status with the company’s existing ordinary shares within its capital framework, enhancing the company’s financial flexibility and resilience in the Nigerian market.
Moreover, Cadbury Nigeria Plc has taken a strategic step by converting its intercompany loan of $7.72 million (N7.04 billion), owed to Cadbury Schweppes Overseas Ltd., into equity. This conversion involves the allocation of 402,082,657 ordinary shares, also valued at 50 kobo each, to Cadbury Schweppes Overseas. Each share will be on par with existing ordinary shares, priced at N17.50 per share based on the company’s share price as of Dec. 27, 2023.
The board of directors has been vested with the authority to execute all requisite measures to effectuate these resolutions, encompassing the listing of the new shares on the stock exchange. Additionally, resolutions passed during the annual general meeting on June 15, 2022, which were identified as erroneous, are slated for rectification.
In compliance with regulatory stipulations, 869,625,840 ordinary shares from the company’s unissued share capital as of June 15, 2022, will be nullified. This action will result in a revised share capital of N939,100,981, comprising 1,778,201,962 ordinary shares valued at 50 kobo each. Akande stressed the imperative of updating the company’s records at the Corporate Affairs Commission (CAC) to accurately reflect the amended share capital. Moreover, adjustments to the Memorandum of Association are anticipated to align with the revised capital structure.
The endorsement of these resolutions underscores Cadbury Nigeria Plc’s commitment to bolstering its financial position and fostering sustained growth amidst evolving market dynamics. With shareholder approval secured, the company is poised to navigate future opportunities and challenges with enhanced resilience and agility.
Credit: News Agency of Nigeria (NAN)
