Cadbury Schweppes’ open offer for 49% in Indian arm opens today

New Delhi, January 23: | Updated: Jan 24 2002, 05:30am hrs
Cadbury Schweppes Plc’s offer to acquire 49 per cent public holding in Cadbury India Ltd will open on January 24, 2002. The multi-national parent has offered Rs 500 for each share. The offer will remain open till February 22, 2002, according to a release.

Cadbury Schweppes Plc along with Cadbury Schweppes Overseas Ltd and Cadbury Schweppes Mauritius Ltd is making a voluntary offer to the shareholders of Cadbury India Ltd to acquire around 174.98 lakh shares of Cadbury India Ltd, the firm’s Indian arm.

The offer price of Rs 500 per share is at a premium of almost 23 per cent to the 26-week average of the closing high-low prices on the National Stock Exchange of India for the week ended December 12, 2001. The offer is in line with Cadbury Schweppes Plc’s purchases in the recent years of outstanding shares in many of its operations in other countries.

If the public shareholding of Cadbury India falls below 10 per cent of its outstanding share capital after the open offer, Cadbury India may be delisted from stock exchanges, according to the release.

Incorporated in 1948, Cadbury India is the leader in the domestic chocolate confectionery market with a share of 70 per cent and is ranked number two in the total food and drinks market.

Some of the popular brands of the company include Cadbury’s, Dairy Milk, 5 Star, Eclairs and Gems. Other products include malted foods, cocoa powders and drinking chocolate. The manager to the open offer is JM Morgan Stanley.