Nov. 14 - On 10 October, Cadbury Schweppes announced that it was focusing on separating its Americas Beverages and confectionery businesses through a demerger of Americas Beverages.
Under the proposed demerger, Cadbury Schweppes' shareowners will receive shares in two new companies, Cadbury plc, holding the Group's confectionery business, and CSAB Inc. (CSAB), which will hold the Americas Beverages business. CSAB is a US incorporated company, which will be renamed and listed on the New York Stock Exchange. Following completion of the demerger, Cadbury plc will not have an equity interest in CSAB.
As part of the demerger process, CSAB has filed its initial Form 10 Registration Statement with the US Securities and Exchange Commission (SEC).
This filing includes, among other things, information on the industry, business, strategy and management of CSAB, and on risks related to both the separation and CSAB's business and operations. It also contains CSAB's financial statements for the 2004, 2005 and 2006 financial years and the half year to June 2006 and 2007 under accounting principles generally accepted in the USA (US GAAP). In addition, it outlines how the distribution of shares in CSAB and its demerger from Cadbury Schweppes will be effected, and sets out certain tax considerations for shareowners.
The appendices to this announcement contain a summary of the demerger process, and a reconciliation of Americas Beverages Underlying Profit from Operations previously disclosed by Cadbury Schweppes under International Financial Reporting Standards (IFRS) to CSAB's US GAAP Income from Operations.
The initial Form 10 filing will be subject to review by the SEC. Revised versions of this Form 10 reflecting additional information, including CSAB's third quarter and full year 2007 results under US GAAP and information related to the demerger, are expected to be filed from early 2008 onwards. The demerger is not expected to be completed before the second quarter of 2008 and a final Form 10 will be filed with the SEC and sent to shareowners before the demerger becomes effective.