The Nation Reports;
Cadbury Nigeria Plc is reducing its capital base by about N12billion under a plan approved yesterday by its shareholders.The measure will result in the cancellation of two of every five ordinary shares held by investors.
At the extra ordinary general meeting in Lagos, 88.14 per cent of shareholders, who accounted for 99.6 per cent of the company’s shareholdings, approved the capital reduction proposed by the Board. Polling results by the registrars to the company, First Registrars, which conducted the voting, indicated that 11.86 per cent of shareholders, accounting for 0.40 per cent equity stake voted against the proposal. Voting was done on one-share-one-vote polling basis.
Cadbury Schweppes Overseas Limited (CSOL), United Kingdom, the majority core investor in Cadbury Nigeria, holds 74.99 per cent equity stake in Cadbury Nigeria.
Under the capital reduction plan, Cadbury Nigeria will return excess capital of N11.9 billion to its shareholders by cancelling two out of every five ordinary shares currently held by the shareholders. Consequently, it will reduce the share capital account by an amount equivalent to the par value of the cancelled shares and share premium accounts by about N11.27 billion.
Source: The Nation