By Sogeyinbo Abdulrahmon Olabanji (SIWES student, Gate Way ICT Polytechnic)
Cadbury Nigeria aims to exchange its $7.7 million debt owed to Cadbury Schweppes Overseas Limited for additional equity, creating 402,082,657 shares at N17.50 per share.
The move is driven by challenges servicing foreign currency-denominated loans due to currency devaluation and scarcity. Despite repaying $18.6 million, an outstanding balance of $7.7 million remains.
The company anticipates that converting the debt to equity will alleviate foreign exchange risks, with the board approving the decision, subject to shareholder approval at an extraordinary meeting on February 8, 2024, before seeking SEC approval.
