Shareholders of Cadbury Nigeria Plc have approved the company’s proposal to increase its share capital from N939.101 million to N1.14 billion.

Mr Fola Akande, the Company’s Secretary, said in a notification to Nigerian Exchange Ltd. (NGX) in Lagos, that the shareholders gave the approval at an Extraordinary General Meeting (EGM) on Feb. 8.

He said that this would be done by the creation of 402,082,657 ordinary shares of 50 kobo each.

Akande explained that such shares would rank pari passu with the company’s existing ordinary shares in the company’s capital.

The company secretary stated that the firm had also converted its intercompany loan of $7.72 million (N7.04 billion) it owed Cadbury Schweppes Overseas Ltd. into equity.

According to him, the converted equity is by the allotment of 402,082,657 ordinary shares of 50 kobo each to Cadbury Schweppes Overseas.

He said that each share would be at par with existing ordinary shares in the capital of the company at N17.50 per share.

Akande added that this would be approved based on the company’s share price as at the close of trading on Dec. 27, 2023

“The shares created be allotted in

accordance with resolution one above and the directors are authorised to take all steps necessary or incidental to effecting the increase.

“The company’s Board of Directors are authorised to take all such lawful steps to pass all requisite resolutions.

“They also do all such other lawful acts and or things as may be necessary, incidental, supplemental, consequential to giving effect to the resolutions above.

“This includes listing the new shares on the stock exchange and all prior lawful steps taken by the directors are hereby ratified,” he said.

Akande said that resolutions 8a and b passed at the annual general meeting of the company on June 15, 2022 was erroneously passed and be corrected.

He said that in compliance with the requirements of Section 124 of the Companies and Allied Matters Act and the Companies Regulation, 869,625,840 ordinary shares in the unissued share capital of the company as at June 15, 2022 be cancelled.

The company’s secretary stated that the share capital of the company, following the cancellation is N939,100,981, comprising

1,778,201,962 ordinary shares of  50k each.

He said that the records of the company at the Corporate Affairs Commission  (CAC) needed to be updated to reflect the correct share capital.

Akande noted that the relevant clauses of the Memorandum of Association of the company would  be amended as necessary, to reflect new share capital of the company, following the corrections and the increase in share capital. (NAN)