25 February 2002 - Cadbury Schweppes plc announced today that its open offer to acquire the outstanding 49% minority in Cadbury India Ltd, representing 17.5 million shares at a price of 500 Rupees per share, closed on Friday 22 February 2002.
At a price of 500 Rupees per share, the offer valued the minority at 8,749 million Rupees (£128 million), making it the largest ever voluntary offer made in India's capital markets. Approximately 14 million shares were tendered in the open offer, taking Cadbury Schweppes' holding above 90% of the paid-up capital of Cadbury India Ltd. The final number will be confirmed after completion of documentary validation.
Commenting on the offer John Sunderland, Chief Executive Officer of Cadbury Schweppes plc, said, "We are delighted with the overwhelming response to the open offer. We would like to extend our thanks to all the shareholders who have tendered their shares. India is a key market for the Group and a important part of our growth strategy. This transaction not only provides opportunities for value creation through closer integration of our Cadbury India business within the Group, but is consistent with our aim of owning 100% of our significant businesses around the world."
Since Cadbury Schweppes' shareholding in Cadbury India now exceeds 90%, it will make another offer at the same price as the original offer within three months, in accordance with the SEBI Takeover Code. On completion of the second offer, Cadbury Schweppes will take the necessary steps to delist Cadbury India Ltd.
Cadbury India
Incorporated in 1948, Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and ranked number two in the total food drinks market. Popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs and Gems. Other products include malted foods, cocoa powders and drinking chocolate. Cadbury India has manufacturing facilities at Thane, Induri (both in Maharashtra) and Malanpur, Madhya Pradesh and 2,000 employees.