According to notice sent to the Nigerian Stock Exchange (NSE) over the weekend in Lagos, it explained that until this certificate is received from CAC, the company cannot ask the exchange to lift the suspension imposed in respect of trading in the company’s shares.
It, therefore, requested that the suspension should be continued until such time that the CAC issued the certificate.
The company, in January, notified the NSE that further to its shareholders special resolution passed on December 19, 2013 approving the reduction of the company’s share capital, the terms of the resolution have been approved by the order of the Federal High Court on December 30, 2013.
Following the above, the company’s board passed a resolution to suspend trading in the shares of the company until the requirements of the court sanction approving the capital reduction have been complied with.
The company has stated that its solicitors have filed an application with the CAC for the registration of the court sanction as required by the provisions of section 109 CAMA.
Cadbury Nigeria Plc has confirmed that the CAC was yet to issue a certificate of decrease in share capital and that the capital reduction will only become effective following the issuance of the certificate.
Prior to this time, at an Extra Ordinary General Meeting (EGM) held December 2013, Cadbury Nigeria sought to reduce its capital base by about N12 billion.
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 (2 to 5) shares, currently held by 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.
Also, it is expected that each shareholder will receive returned capital per cancelled share at N9.50 per share.
