This archive report was first published on 3 October 2021.
Published on October 3, 2021, Unilever Tea Kenya Limited's Board of Directors has approved plans to separate its tea business following a decision by its parent firm, Unilever Group, to separate its global tea business, including tea plantations.
The company's Kenyan tea business will be transferred to a foreign newly incorporated tea company, Unilever Tea Holdco UK Limited (TeaCo), subject to any regulatory approvals. This move aims to create a dedicated tea group within Unilever Group.
Unilever's Interest in Limuru Tea ¶
As a result of the transfer of shares, Unilever Tea Kenya Limited's indirect interest in Limuru Tea Plc will also transfer to TeaCo. Unilever Kenya owns a 52% stake in the Nairobi-listed Limuru Tea Plc.
Unilever Tea Kenya Ltd, a subsidiary of Unilever, an Anglo-Dutch conglomerate, is involved in the production of tea, mainly for export. The company has a total landholding of 16,223 acres, with 20 tea estates and eight factories manufacturing an average of 32 million kgs of tea per year.
Unilever Tea Kenya Ltd started as Brooke Bond Kenya (BBK) in 2004 and was later delisted from the Nairobi Stock Exchange in January 2009 after Brooke Bond took its holding in the company to 97.65%. The company's decision to de-list was due to the fact that it does not meet the requirement that all listed firms should have at least a 25% equity stake owned by local shareholders.
