UNILEVER TEA KENYA LIMITED
Previous company name
Name change date
Unilever Tea Kenya Limited, also known as Unilever, is a Kenyan-based firm involved in tea research, sustainable agriculture, and production of black, green and speciality tea. It is a publicly quoted company incorporated in 2004, and has its registered head office located in Kericho, Kenya. The company’s common stock is listed on the Nairobi Stock Exchange under the trading name BBND.
The company acts as the managing agent in the growing, manufacturing, sales and marketing of its teas. It is known as the largest producer of tea in Kenya, with a total land holdings of 16,223 acres. The company has 20 tea estates, 8 factories (including Mabroukie tea factory in Limuru), and produces 32 million kgs of tea every year. Its products are marketed to various countries in Europe, United States, Middle East, and Australia among others.
Unilever is also known as the largest private sector employer in Kenya, employing approximately 21,000 workers in its operations. It works closely with UNEP (United Nations Environment Programme) towards the common goal of afforestation.
The company manages its subsidiary, Limuru Tea Company Limited, which is engaged in the growing of green leaf tea, with 275 hectares of tea land situated four kilometers to the east of Limuru Town.
The Company is involved in the production of tea, mainly for export.
Description and history
The Company involved in the production of tea, mainly for export. The Company’s total production for the year ended December 31, 2006, was 27,933 tons. The Company’s wholly owned subsidiaries include Mabroukie Tea and Coffee Estates Limited, Kenya Tea Blenders Limited, Brooke Bond Mombasa Limited, The Buret Tea Company Limited and Kitco Limited. It also has a 52% interest in The Limuru Tea Company Limited, which is involved in the production of green leaf.
The Company incorporated in 1925 and listed on Nairobi Stock Exchange in 1972.
On 6 January 2009, the Company became taken over by Unilever plc. Shareholders of Unilever Tea Kenya Limited (UTKL) have approved the delisting of the Company from the Nairobi Stock Exchange .
The decision, which was passed during the company’s extraordinary general meeting in Nairobi, is expected to revert the tea firm to a private institution after 36 years of trading at the bourse.
The move follows a successful conclusion of a buy-out bid of the firm’s 11.76 per cent minority equity stake by its main shareholder, Unilever Plc through its subsidiary Brooke Bond Group (which owns 88.24 per cent equity stake).
Trading in UTKL shares on the NSE were suspended on July 8 and were expected to resume trading on or about October 9 if the deal did not materialise.
Mr Richard Fairburn, the UTKL Managing Director, said the shareholders’ decision had been communicated to the Capital Markets Authority.
‘We are waiting for instructions from CMA to NSE to delist the company from the bourse,” Fairburn said in a statement.
In the Offer Document, the transaction was conditional on Brooke Bond receiving acceptances which, when combined resulted to it holding not less that 90 per cent of the issued share capital of Unilever Tea.
Minority shareholders, who held 4.6 million shares representing 80 per cent of the 5.75 million UTKL ordinary shares, accepted the offer.
With the acquisition of the minority shareholding, Brooke Bond now holds 97.65 per cent or 47.7 million shares in Unilever Tea.
The 2.35 per cent remaining minority shareholders will not however be able to trade their shares. The drive for Unilever Kenya to delist from the NSE emanate from the fact the it does not meet the CMA requirement that all listed firms should have at least 25 per cent equity stake owned by local shareholders.
Shareholders who accepted the offer have received payment at the offer price of Sh62 a share, according to the instructions provided in the acceptance forms.
The change in ownership structure of Unilever Kenya would enable it capitalise on shared services in order to increase the Group’s synergy and help the firm attain higher levels of efficiency, improve productivity and earnings.
Brooke Bond’s move to acquire the third party shareholding in Unilever Tea is consistent with the company’s strategy to achieve a preferred wholly owned structure within East and Southern Africa.
Unilever Tea is one of the largest commercial enterprises in Kenya.
It has 16, 223 acres of land and 20 tea estates, eight factories manufacturing an average of 32 million kilogrammes of tea a year.
Involved in tea research, sustainable agriculture, and production of black, green and speciality tea
US SIC Code
COMMERCIAL STREET ,INDUSTRIAL AREA
City province or state postal code
Phone: +254 20 532520
Fax: +254 20 532521
Country address: KENYA
Website url: www.unileverea.com