Unilever Tea Kenya Limited’s Board of Directors has approved plans to separate its tea business from Unilever Plc, a British multinational consumer goods company.
In a statement, the transfer of the balance of Unilever Plc’s tea brands and geographies and all tea estates in which Limuru Tea Plc falls to will be transferred to a foreign newly incorporated tea company Unilever Tea Holdco UK Limited (TeaCo).
The transfer also includes the transfer of Unilever’s indirect interest in Limuru Tea.
“The assets being transferred by Unilever to TeaCo include Unilever’s shareholding in Unilever Tea Kenya Limited. By virtue of the transfer of shares, Unilever’s indirect interest in Limuru Teal Plc will also transfer to TeaCo,” Dr Richard Koriri, Chairman Limuru Tea Plc said.
Unilever Kenya owns a 52% stake in the Nairobi listed Limuru Tea Plc.
Limuru Tea is an outgrower for Unilever Tea Kenya and owns 282 acres of tea plantations in Limuru.
The transfer is subject to any regulatory approvals after the Unilever Tea Kenya limited’s Board of Director approval of the proposed separation which is projected to be concluded by the end of the year.