:. Food Industry News

Categories: Mergers and Acquisitions

Brooke Bond to Buy Out Kenyan Unilever Tea

Source: Reuters
08/07/2008

Nairobi, July 7 - Brooke Bond Group intends to buy the minority of shares in Unilever TeaKenya (UTKL) it doesn't already own for 356.5 million shillings ($5.46 million) and delist the tea grower, a statement said on Monday.

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UK-based Brooke Bond currently holds 88.24 percent in the company, which has vast tea estates in Kenya's Rift Valley region, and is seeking to take up the remaining 11.76 percent, or 5.75 million ordinary shares, at 62 shillings each.

"The board of directors of Unilever Tea Kenya have ... received notice of intention ... in respect of the proposed acquisition by the offeror of the entire shareholding of UTKL," the statement said.

The statement said Unilever has already applied to the Capital Markets Authority and the Nairobi Stock Exchange to have trading of the stock suspended. Should the deal fall through, trading will resume on Oct. 19, the statement said.



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