Cadbury Nigeria’s board of directors met yesterday, Wednesday 6th of May 2020, to deliberate on some important company matters. One of the resolutions they reached was for the company’s management to continue all existing business transactions with Mondelez International and all its subsidiaries and partners. This is for an extended period of one year.
In a corporate action that was issued earlier on Thursday, Cadbury Nigeria informed the Nigerian Stock Exchange and other stakeholders that the board members also ratified all existing transactions that were earlier entered into with Mondelez International, its subsidiaries, and other business partners.
Note that the directive also mandated Cadbury Nigeria’s management to continue business transactions with all the companies associated with Mondelez International, as well as those associated with Cadbury Nigeria Plc itself.
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The nature of these transactions between Cadbury Nigeria and Mondelez International range from purchase of raw materials, equipment, and finished products to support services and intellectual property licenses. Part of the corporate disclosure which was signed by the Company Secretary, Fola Akande, said:
“That Management be and it is hereby authorised to enter into recurrent related party transactions with any of
the persons listed in (i) below and in respect of any of the transactions listed in (ii) below, which transactions
are required to enable the Company continue with its day-to-day operations, and that any such transaction
already entered into by Management be and it is hereby ratified.
“That this authorisation will continue and remain in place for the next one year from the date of the Board’s
approval.”
It should be noted that Cadbury Nigeria Plc, which was established in the 1950s, was formerly a subsidiary of Cadbury UK. However, after Mondelez International (an American company) acquired stakes in Cadbury Schweppes Overseas Ltd, it became entitled to a 74.97% majority eequity interest in Cadbury Nigeria Plc.
Read the full disclosure by the company here.
