Cadbury to spin off US drinks arm in NYSE listing
Cadbury Schweppes said on Wednesday it would split off and list its Americas Beverages division on the New York Stock Exchange after failing to find a buyer for the unit.
By Agencies |
LONDON: Cadbury Schweppes said on Wednesday it would split off and list its Americas Beverages division on the New York Stock Exchange after failing to find a buyer for the unit.
The US drinks arm is worth about $ 14.3 billion according to industry experts.
Cadbury had said earlier this year that it might abandon sell-off plans because highly volatile financial markets were making it difficult for bidders to raise sufficient cash to finance an acquisition.
"Since that time, debt market conditions have remained difficult," the group said in a trading update, adding that there would not be an "acceptable sale process" in the near future.
"Accordingly, our focus is now on demerging our Americas Beverages business."
Under a de-merger, Americas Beverages would be listed as a separate company, with its shares given to Cadbury Schweppes shareholders.
Cadbury said it would list the division on the NYSE because the unit generates over 80 per cent of its sales and profits in the United States.
The group added today that the demerger would not be completed before the second quarter of 2008.
"It is the intention of the board to create two strong, well managed businesses focused on profitable growth with efficient balance sheets," the group said.
"This will enable shareholders to receive the benefit of any immediate cash surplus at the time of separation."
The US drinks arm is worth about $ 14.3 billion according to industry experts.
Cadbury had said earlier this year that it might abandon sell-off plans because highly volatile financial markets were making it difficult for bidders to raise sufficient cash to finance an acquisition.
"Since that time, debt market conditions have remained difficult," the group said in a trading update, adding that there would not be an "acceptable sale process" in the near future.
"Accordingly, our focus is now on demerging our Americas Beverages business."
Under a de-merger, Americas Beverages would be listed as a separate company, with its shares given to Cadbury Schweppes shareholders.
ADVERTISEMENT
Cadbury said it would list the division on the NYSE because the unit generates over 80 per cent of its sales and profits in the United States.
The group added today that the demerger would not be completed before the second quarter of 2008.
"It is the intention of the board to create two strong, well managed businesses focused on profitable growth with efficient balance sheets," the group said.
"This will enable shareholders to receive the benefit of any immediate cash surplus at the time of separation."
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
