Cadbury Nigeria plans to offload 402 million shares due to an inability to settle a $7.7 million deb
Cadbury Nigeria has proposed exchanging its $7.7 million (N7.03 billion) debt owed to Cadbury Schweppes Overseas Limited for additional equity.
Mondel–z International Inc, through its subsidiary Cadbury Schweppes Overseas Limited, holds a significant 74.97 percent ownership in Cadbury Nigeria.
In a statement released on Tuesday to the Nigerian Exchange Limited (NGX), Cadbury Nigeria revealed that it borrowed $23 million from Cadbury Schweppes to settle outstanding third-party loans used for financing raw material imports and other input costs.
The company cited challenges in servicing the foreign currency-denominated loans, attributing the difficulty to the persistent scarcity of foreign currency in the country. Cadbury Nigeria noted that the liberalization of the foreign exchange market in June 2023, coupled with the currency devaluation, further strained the company, resulting in a significant increase in the Naira value of its foreign currency-denominated loans.
According to Cadbury, this situation led to an unrealized exchange loss of ₦20.6 billion and an after-tax loss of ₦10.2 billion for the period ending September 30, 2023. The company managed to repay $18.6 million of the principal and accrued interest, leaving an outstanding balance of $7.7 million as of December 31, 2023.
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