B Commodities ME (FZE), a foreign company incorporated in the United Arab Emirates, has announced its intention to acquire effective control of Limuru Tea Plc.
This move comes following a share purchase agreement between B Commodities and Ekaterra Holdco UK Limited, which owns a substantial stake of Lipton Teas and Infusions Kenya plc, a key shareholder of Limuru Tea.
According to the public announcement made under Regulation 4(1) and 4(2) of The Capital Markets [Take-overs & Mergers) Regulations, 2002, B Commodities will indirectly acquire a 51.99% stake in Limuru Tea upon successful completion of the transaction.
“Pursuant to Regulation 4(1) of The Capital Markets [Take-overs & Mergers) Regulations, 2002 (the Take-over Regulations), 8 Commodities ME (FZE), a limited liability company incorporated in the United Arab Emirates (Registration No. 11258) whose address for purposes hereof is SAIF Office Q1 06-126/C, P.O. Box 514473 U.A.E (B Commodities),”
Limuru Tea Plc Take Over
“Hereby gives notice that upon successful completion of the transaction described in paragraph 4 below (the Transaction) B Commodities shall indirectly acquire effective control and beneficial shareholding of Limuru Tea Plc, a public limited company incorporated in the Republic of Kenya with registration number 1/59 (Limuru Tea),” stated B Commodities statement.
Limuru Tea is a public limited company listed on the Main Investment Market Segment of the Nairobi Securities Exchange (NSE).
Ekaterra Holdco UK Limited currently owns 98.56% of Lipton Teas and Infusions Kenya plc, which in turn holds the majority shareholding in Limuru Tea.
The share purchase agreement between Ekaterra and B Commodities includes various subsidiaries and affiliates in East Africa, facilitating B Commodities’ acquisition of the controlling stake in Limuru Tea.
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Building Existing Investments in Tea Estates
The acquisition aligns with B Commodities’ strategic objectives, as it aims to contribute to the growth and expansion of the tea business, leveraging its expertise and industry position.
Browns Investments Plc, a Sri Lanka-based company listed on the Colombo Stock Exchange, indirectly owns B Commodities and has a strong presence in diversified industries, including leisure, renewable energy, and agriculture.
Browns Investments Plc, through its subsidiary B Commodities, seeks to enhance its foothold in the tea cultivation and agro-processing sector, building on its existing investments in tea estates in Sri Lanka and Kenya.
Equally important, B Commodities emphasizes its commitment to maintaining Limuru Tea’s listed status on the Nairobi Securities Exchange, recognizing its importance as one of Kenya’s leading agricultural companies.
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The transaction is subject to regulatory approvals from the Competition Authority of Kenya (CMA) and the Fair Competition Commission of Tanzania, with an anticipated completion timeline in the third quarter of 2024.
Additionally, B Commodities intends to apply for exemption from compliance with the Capital Markets [Take-overs & Mergers) Regulations, pending approval from the Capital Markets Authority.
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