![](https://i0.wp.com/tndonlinenews.com.ng/wp-content/uploads/2024/01/CadBury.png?fit=1024%2C647&ssl=1)
Cadbury Nigeria, a subsidiary of Cadbury Schweppes Overseas Limited, has announced plans to sell 402 million shares to address its $7.7 million (N7.03 billion) debt owed to Cadbury Schweppes Overseas Limited, a subsidiary of Mondel–z International Inc.
The debt was initially incurred as a result of a $23 million loan obtained from Cadbury Schweppes to settle third-party loans, primarily used for raw material imports and other input costs. The company, in a statement released on Tuesday to the Nigerian Exchange Limited (NGX), expressed challenges in servicing the foreign currency-denominated loans due to persistent foreign currency scarcity in the country.
Cadbury Nigeria highlighted that the liberalisation of the foreign exchange market in June 2023, coupled with the subsequent devaluation of the currency, intensified the pressure on the company. This 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.
Despite repaying $18.6 million of the principal and accrued interest to the investor, Cadbury Nigeria still faces an outstanding balance of $7.7 million as of December 31, 2023. The proposed equity swap aims to address the financial challenges posed by the foreign currency-denominated loans and ensure the stability of Cadbury Nigeria in the evolving economic landscape.