A company incorporated in the United Arab Emirates (UAE), B Commodities ME (FZE), is set to acquire a significant share in Limuru Tea, aiming for indirect control and beneficial ownership.
In a notice, the company said it has already completed a share purchase agreement with Ekaterra Company, which owns the largest share of Limuru Tea and is set to acquire 51.99 percent of the share capital.
According to the notice, upon completion of the agreement, the firm will indirectly acquire effective control and beneficial shareholding of Limuru Tea.
“On 6th May 2024, Ekaterra and B Commodities entered into a share purchase agreement for the sale of the share capital of various Ekaterra subsidies and /or affiliates in East Africa including 95.56 % of the total issued capital of Lipton tea.”
“The transaction will, upon completion, result in B commodities indirectly acquiring effective control and beneficial shareholding of Limuru tea equal to 51.99% of the issued share capital of Limuru Tea.”
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According to the latest statistics from the Kenya Tea Board, the country’s tea export earnings stood at a record Kes 180.57 billion in 2023, representing a 31 percent increase in the value of exports.
The proposed buyout comes after Browns Investments, a Sri Lankan company, acquired all tea estates owned by Lipton Teas and Infusions Kenya yesterday, pending regulatory standards clearance.
In the deal, the Colombo-based firm also took over other Lipton’s subsidiaries in Rwanda and Tanzania.
