ByÂ Peter Egwuatu
Cadbury Nigeria PlcÂ has gotten regulatory approval to extend its N22.2 billion Rights Issue by one week following the call for extension by shareholders.
The companyâ€™s Right Issue which is aimed at raising the sum of N22.2 billion has been extended for one week to 30 October 2009 to enable continued participation by shareholders.
In a company statement, Mr. Kufre Ekanem, Corporate Affairs Manager of Cadbury Nigeria Plc stated that a lot of shareholders had informed the company that they had not received their Rights circulars or had recently received them and needed more time to make their decisions. According to Ekanem, â€œmany shareholders have complained of non-receipt of circulars, which they felt did not allow sufficient timing to take or trade their allotted rights.
The Company therefore made an application to extend the offer period for a further two-weeks but the regulatory authority (SEC) has approved a one-week extension. Thus, the Cadbury Nigeria Plc Rights Issue will now close on Friday, October 30, 2009. We encourage all our shareholders to utilize this expanded window and participate in the offer by taking or trading their allotted rightsâ€.
It will be recalled that the leadership team of Cadbury Nigeria Plc has been proactively engaging its stakeholders on the Facts Behind the Rights Issue. Led by Mr. Alan Palmer, Managing Director, the company has met with the leaders of the Nigerian Stock Exchange (NSE) and held forums with stockbrokers and shareholders. In his comments, Mr. Palmer said: â€œthe net proceeds of this Rights Issue will be used to repay our companyâ€™s bank borrowings to reduce our interest burden and the balance of the Issue proceeds will be applied to fund improvements of the Companyâ€™s capacity supporting infrastructure, efficiency initiatives and upgrade of facilitiesâ€.
According to Ekanem â€œwe have been very encouraged by all the positive comments received in our stakeholder sessions on our Rights Issue and on the rebuilding of Cadbury Nigeria but the key criterion for success is that every shareholder is given a fair chance to receive, study and decide on participating in the Rights Issue as there are benefits to shareholders who chose to either take up their rights and there are also benefits to those who choose to trade their rights. Any shareholders who have not yet received their circulars should urgently contact Union Registrars or StanbicIBTC Bank to obtain a duplicate copy.â€
The new shares in the ratio of 7 new ordinary shares for every 3 ordinary shares held as at 26 June 2009 are offered to shareholders at N=8.65 per share, a 36 per cent discount on the quoted price of N13.54.