Cadbury Schweppes Demerger Update
The documents give details on the process by which the scheme and demerger will be effected and also provide key information on the two businesses, Cadbury plc and Dr Pepper Snapple Group Inc. (DPSG).
20/03/08 As part of the process of separating its confectionery business from its Americas Beverages business, Cadbury Schweppes is announcing that the Circular, which details the structure of the demerger and scheme of arrangement, along with the Prospectus, which relates to Cadbury plc's introduction to the official list and admission to trading on the London Stock Exchange, are available on Cadbury Schweppes' website at www.cadburyschweppes.com/demerger. The Circular has been posted to shareowners along with Cadbury Schweppes 2007 Annual Report.
The documents give details on the process by which the scheme and demerger will be effected and also provide key information on the two businesses, Cadbury plc and Dr Pepper Snapple Group Inc. (DPSG). The Circular provides, among other things, details on the distribution of Cadbury plc and DPSG shares to shareowners and includes an update on current trading. We are also announcing the appointment of four new Board directors for DPSG.
Basis of the Demerger
Conditional on the scheme and demerger proposals being approved, ordinary shareowners will receive in exchange for every 100 existing Cadbury Schweppes Ordinary Shares (which will be cancelled):
* 64 ordinary shares in Cadbury plc, which will be listed on the London Stock Exchange; and
* 12 shares of common stock in DPSG, which will be listed on the New York Stock Exchange.
Information on the distribution of shares for Cadbury Schweppes American Depositary Receipt holders is provided in the Circular.
Current Trading
Since 31 December, 2007 there have been no material changes to the current trading or outlook for the confectionery business (which will become Cadbury plc) or Americas Beverages business (which will become DPSG).
The confectionery business has had a strong start to the year in all regions, partly due to an earlier Easter but also due to continued momentum in gum and Americas Beverages revenue growth is in line with expectations. Both businesses have implemented price increases in order to offset commodity input costs through 2007.
Appointment of New DPSG Board Directors
In February, we announced the appointment of Wayne Sanders, former Chairman and CEO of Kimberly-Clark, as Chairman of DPSG on demerger. We are announcing the appointment of four additional Board directors for DPSG: Jack Stahl, Terry Martin, Pamela Patsley and Anne Szostak.
Jack Stahl has wide consumer goods experience including the beverage industry having spent 22 years at The Coca-Cola Company where he was CFO and Senior Vice President of the North America Group and Senior Vice President of the Americas Group before becoming President and Chief Operating Officer. From 2002 to 2006 he was Chief Executive Officer and President of Revlon and is currently on the Board of Schering-Plough Corporation.
Terry Martin has broad public company experience having served as CFO of American Cyanamid Company, SPX Corporation and subsequently Quaker Oats Company, which included the Gatorade brand. He retired in 2001 following the sale of Quaker Oats to PepsiCo. He is on the Board of Del Monte (USA) where he is Chairman of the Audit Committee.
Pamela Patsley is a CPA and has over 20 years of executive experience in the financial services sector including as Chief Financial Officer at First USA, Inc. Most recently she was Senior Executive Vice-President of First Data Corporation from March 2000 to October 2007 and President of First Data International from May 2002 to October 2007. She joined First Data in 2000, having previously been President and CEO of Paymentech, Inc. She is on the Boards of Molson Coors Brewing Company and Texas Instruments, Inc. where she chairs the Audit Committee.
Anne Szostak is currently President and CEO of Szostak Partners which provides advice on strategic and human resource issues. From 1973 to 2004 she held executive positions at FleetBoston Financial Corporation including Executive Vice President and Corporate Director, Human Resources and Diversity, and Chairman and Chief Executive Officer of Fleet Bank Rhode Island. She is also is a director of Belo Corporation, ChoicePoint, Inc., Spherion Corporation and Tupperware Brands Corporation.
