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Cadbury to raise N22.2bn from rights issue

By Victor Ahiuma-Young
CONFECTIONERY and food drink manufacturing giant, Cadbury Nigeria Plc, is to raise  N22.2 billion from rights issue to repay the company’s bank borrowing, thus reducing its interest burden.

The company is also planning to use the balance of the proceeds to fund the improvement of the company’s capacity supporting infrastructure, efficiency initiatives and upgrade of facilities.

A statement by the company’s Corporate Affairs Manager, Mr. Kufre U. Ekanem, said  the plan to raise the fund was approved by stakeholders at the company’s  recent Annual General Meeting.

According to the statement at the Completion Board Meeting on the issue last week,  Mr. Alan Palmer, Managing Director of Cadbury Nigeria Plc, said the net proceeds of the rights issue would be used to repay the company’s bank borrowing, thus reducing its interest burden and the balance of the issue proceeds will be applied to fund the improvement of the company’s capacity supporting infrastructure, efficiency initiatives and upgrade of facilities.


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