Unilever's tea business buyer retains minority shareholders

Puccini, an investment vehicle majority owned by the CVC Partners has disclosed that it does not intend to make a takeover of Limuru Tea- the unit representing Unilever Plc’s tea business in the country.

This means the buyer will only be taking no more than 52 per cent or 1.248 million shares representing Unilever's stake in Limuru Tea as of the end of last year.

The minority shareholders in the business include Hassan Popat, Alimohamed Adam, Minesh and Bijal Shah.

Other minorities in the business cover Standard Chartered and SBM Bank nominees.

At the same time, Limuru Tea Plc is expected to remain a listee of the Nairobi Securities Exchange (NSE).

“The parties do not wish to see any change to the status of Limuru Tea as one of Kenya’s leading agricultural companies listed on the NSE. Maintenance of the listing on the NSE and the significant investment from the Kenyan public is regarded as a key ingredient to the success of Limuru Tea,” the buyer said in a disclosure statement on Wednesday.

Unilever Plc announced mid last year, its intention to separate its global tea business including a spin-off from its tea interests in Kenya.

The sale of the business was triggered by a number of factors including the falling demand for black tea which has been causing a hit to its sales turnover.