Cadbury Nigeria Shareholders Greenlight ₦1.14 Billion Increase in Share Capital
In a recent development, shareholders of Cadbury Nigeria Plc have unanimously approved the company’s proposal to bolster its share capital from ₦939.101 million to ₦1.14 billion. The resolution was passed during an Extraordinary General Meeting (EGM) held on February 8th.
According to Fola Akande, the Company Secretary, the increase in share capital will be achieved through the creation of 402,082,657 ordinary shares of 50 kobo each. These newly created shares will be on par with the company’s existing ordinary shares, enhancing the company’s capital structure.
Furthermore, the company has taken significant steps to strengthen its financial position by converting an intercompany loan of $7.72 million (₦7.04 billion) owed to Cadbury Schweppes Overseas Ltd. into equity. This conversion entails the allotment of 402,082,657 ordinary shares of 50 kobo each to Cadbury Schweppes Overseas, priced at ₦17.50 per share, reflecting the company’s share price as of December 27, 2023.
Akande emphasized that the Board of Directors has been authorized to facilitate all necessary steps to implement the share capital increase, including listing the new shares on the stock exchange. Additionally, resolutions passed at the company’s previous annual general meeting in June 2022 will be corrected as necessary to comply with regulatory requirements.
As a result of these decisions, Cadbury Nigeria’s share capital will be revised to ₦939,100,981, consisting of 1,778,201,962 ordinary shares of 50 kobo each. This adjustment underscores the company’s commitment to sound corporate governance practices and aligning its operations with legal mandates.
The company will proceed to update its records with the Corporate Affairs Commission (CAC) and amend relevant clauses in its Memorandum of Association to reflect the revised share capital. These measures demonstrate Cadbury Nigeria’s proactive approach to maintaining transparency and integrity in its corporate affairs.
This move is expected to fortify Cadbury Nigeria’s financial structure and position the company for sustained growth and profitability in the dynamic business landscape.
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