Cadbury Nigeria Seeks 100% Ownership of Stanmark Cocoa DivisionEmele Onu
Cadbury Nigeria Plc, a manufacturer of drinks and food products, said it plans to acquire the 2 percent of Stanmark Cocoa Processing Co. it doesn’t already own, to reduce the cost of running the unit and bolster revenue.
“Cadbury proposes to exchange one share for 5.58 shares of Stanmark” and then merge the companies, Kufre Ekanem, a spokesman for Cadbury Nigeria, said today in a telephone interview from Lagos, the commercial capital.
Stanmark has a 12,500 ton capacity plant in the south-western Nigeria city of Ondo and produces cocoa butter, liquor and powder. It supplies the entire cocoa powder requirements for Cadbury beverage products while the cocoa butter and liquor are exported, Ekanem said.
Nigeria is the fourth-largest cocoa producer after Ivory Coast, Ghana and Indonesia, according to the London-based International Cocoa Organization’s website.
The combination will make it easier for Cadbury Nigeria to refinance the cocoa business and raise output, Ekanem said. “The companies have applied to the court and the regulatory authorities for approval and believe the deal will be completed soon,” he said.
Cadbury Nigeria’s nine-month net income through September advanced 34 percent to 2.08 billion naira ($13.2 million) from 1.56 billion naira a year earlier, it said in a statement on Oct. 31. Revenue declined 2.4 percent to 24.1 billion naira.
The stock rose 3.5 percent to 37.27 naira in Lagos. It has climbed 29 percent this year, compared with a 19 percent gain for the Nigerian Stock Exchange All-Share Index.