Description
Cadbury Delisting Background
CADBURY INDIA DELISTING
INTRODUCTION OF COMPANY
? Cadbury
is a confectionery company owned by Kraft Foods and is the industry's secondlargest globally after Mars. ? The company operates in more than 50 countries worldwide. ? The company was known as Cadbury Schweppes plc from 1969–2008 until its demerger. ? In 2010 Kraft food took over .
BACKGROUND OF DELISTING
? In
2003 Cadbury India delisted by offering Rs.500 per share to Shareholders' ,company Managed to buy over 90% of the Shares & delisted in Stock exchanges . ? Around 8000 minority shareholders holds 2.4% equity ,rejected the price . ? Cadbury wants to delist the shares from the Bombay Stock Exchange to own 100% of the company to benefit from a fast growing market.
? According
to law, if there is 90% majority with the promoters group, the company can pass a resolution for compulsory buyback.
At extra ordinary general meeting held in November 2009 company decided reduce the equity capital by buying back the shares from minority share holder by paying them Rs 1340 / share. ? But minority share holder expecting 25% of last buyback offer ie … 2375 ? Court case have been filed both the company and minority shareholders fought for exit price court directed E&Y to analysis the price .
?
?
?
?
? ?
Ernst & young (E&Y) valued based on (DCF) method and recommended Cadbury to offer Rs 2014/share which is 15% higher than the last year . In 2010 E&Y recommended Rs 1743 /share to buy back offer , based on the comparable companies multiples method . Finally Cadbury India agreed to pay 1900/share to minority share holders to settle the court battle but minority shareholders were not happy demanding the valuation to be done based on DCF . Share holders wants 2500/share . Chocolate maker Cadbury, which is in dispute with the minority shareholders on its plans to delist, lashed out at the Investor Grievances Forum (IGF) today saying the forum was not justified to intervene in the case.
doc_425627126.pptx
Cadbury Delisting Background
CADBURY INDIA DELISTING
INTRODUCTION OF COMPANY
? Cadbury
is a confectionery company owned by Kraft Foods and is the industry's secondlargest globally after Mars. ? The company operates in more than 50 countries worldwide. ? The company was known as Cadbury Schweppes plc from 1969–2008 until its demerger. ? In 2010 Kraft food took over .
BACKGROUND OF DELISTING
? In
2003 Cadbury India delisted by offering Rs.500 per share to Shareholders' ,company Managed to buy over 90% of the Shares & delisted in Stock exchanges . ? Around 8000 minority shareholders holds 2.4% equity ,rejected the price . ? Cadbury wants to delist the shares from the Bombay Stock Exchange to own 100% of the company to benefit from a fast growing market.
? According
to law, if there is 90% majority with the promoters group, the company can pass a resolution for compulsory buyback.
At extra ordinary general meeting held in November 2009 company decided reduce the equity capital by buying back the shares from minority share holder by paying them Rs 1340 / share. ? But minority share holder expecting 25% of last buyback offer ie … 2375 ? Court case have been filed both the company and minority shareholders fought for exit price court directed E&Y to analysis the price .
?
?
?
?
? ?
Ernst & young (E&Y) valued based on (DCF) method and recommended Cadbury to offer Rs 2014/share which is 15% higher than the last year . In 2010 E&Y recommended Rs 1743 /share to buy back offer , based on the comparable companies multiples method . Finally Cadbury India agreed to pay 1900/share to minority share holders to settle the court battle but minority shareholders were not happy demanding the valuation to be done based on DCF . Share holders wants 2500/share . Chocolate maker Cadbury, which is in dispute with the minority shareholders on its plans to delist, lashed out at the Investor Grievances Forum (IGF) today saying the forum was not justified to intervene in the case.
doc_425627126.pptx