Lipton Teas halts earlier plan to fully acquire Limuru Tea

Source: Capital FM Kenya
Author: Phidel Kizito

NAIROBI, Kenya, May 22 - Lipton Teas and Infusions has withdrawn earlier plans to acquire full ownership of Limuru Tea.

As the majority shareholder, owning 51.99 percent of Limuru Tea's total issued share capital, Lipton Teas initially issued a notice on July 4, 2022, indicating its intention to acquire the remaining shares of Limuru Tea.

This move followed the indirect change of ownership and effective control of Limuru Tea due to the acquisition of Ekaterra B.V., the indirect holding entity of the company, by Cuppa Bidco B.V.

"Subsequently, and in accordance with Regulation 4(4) of the Take-over Regulations, the Company submitted the draft offeror's statement of the takeover scheme (Offeror's Statement) in relation to the Cuppa Transaction concerning Limuru Tea to the Capital Markets Authority (CMA) for its approval," it said in a statement.

"However, through a letter dated 15 July 2022, the CMA suspended the mandatory takeover process by Cuppa for the acquisition of the remaining shares in Limuru Tea (MTO), notice of which was published on 4 August 2022 and which has remained in place to date."

On May 9, Lipton applied to the CMA for approval to withdraw the offeror's statement, expressing its decision not to proceed with the MTO.

This development coincided with a notice of intention by B Commodities ME (FZE), a UAE firm, concerning the indirect acquisition of Lipton Kenya's shareholding in Limuru Tea.

Likewise, Browns Investments, a Sri Lankan company, recently announced that it had acquired all tea estates owned by Lipton Teas and Infusions Kenya, pending regulatory standards clearance.

The Colombo-based firm also took over other Lipton's subsidiaries in Rwanda and Tanzania.

As part of the deal, Bomet and Kericho communities, where the tea estates are located, will be given a 15 percent stake in the newly bought company.