Lipton Kenya has withdrawn its offer to buy remaining shares in Limuru Tea as another firm expresses interest.
According to the notice, upon successful completion of the transaction described therein (the Transaction), UAE-based firm, B Commodities ME (FZE), will indirectly acquire effective control and a beneficial shareholding of 51.99% of Limuru Tea.
Completion of the Transaction is subject to obtaining approvals from certain regulatory authorities.
The Capital Markets Authority (CMA) has approved Lipton Teas and Infusions Kenya Plc’s request to withdraw its offer to acquire the remaining shares of Limuru Tea Plc.
Lipton Kenya currently holds 51.99% of Limuru Tea’s shares.
Background
In July 2022, Lipton Kenya proposed acquiring all outstanding shares in Limuru Tea. However, the CMA suspended the mandatory takeover process later that month.
Subsequently, on May 9, 2024, Lipton Kenya formally requested withdrawal of the offer.
“Lipton Kenya has advised the CMA that, in view of the Transaction, it will not proceed with its intended offer. Shareholders and the investing public are advised to exercise caution when dealing in Limuru Tea ordinary shares on the Nairobi Securities Exchange pending further announcement.”
A UAE-based firm, B Commodities ME (FZE), has expressed interest in indirectly acquiring Lipton Kenya’s stake in Limuru Teaa.