Cadbury Nigeria Offers 402 Million Shares Amid Struggles To Repay $7.7 Million Debt

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Cadbury Nigeria has offered to swap its $7.7 Million debt owed to Cadbury Schweppes Overseas Limited for more equity.

Cadbury Schweppes Overseas Limited, controlled by Mondel–z International Inc, is a major investor in Cadbury Nigeria with 74.97 percent stake.

In a statement on Tuesday sent to the Nigerian Exchange Limited, NGX Cadbury Nigeria said it borrowed $23 Million from Cadbury Schweppes to settle outstanding third-party loans obtained to fund raw material imports and other input costs.

Cadbury Nigeria said it is facing challenges servicing the foreign currency-denominated loans due to persistent foreign currency scarcity in the country.

The liberalisation of the foreign exchange market in June 2023 led to a devaluation of the currency; impacting Cadbury as the Naira value of its foreign currency denominated loans significantly increased. This resulted in an unrealised exchange loss of ₦20.6 Billion and a loss after tax of ₦10.2 Billion for the period ending September 30, 2023.

Despite challenges, Cadbury Nigeria managed to repay $18.6 Million of the principal and accrued interest, with an outstanding balance of $7.7 Million as of December 31, 2023.

 

 

 

 

 

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