limuru tea
A company based in the United Arab Emirates (UAE) plans to purchase a major stake in Limuru Tea, with the goal of gaining indirect control and beneficial ownership.
In a public announcement, the firm stated that it has already concluded a share purchase agreement with Ekaterra firm, which controls the majority of Limuru Tea, and plans to buy 51.99 percent of the share capital.
The notice also said that following the conclusion of the transaction, the firm will indirectly acquire effective control and a beneficial interest in 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 company said.
“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.”
According to the Kenya Tea Board’s most recent figures, the country’s tea export earnings reached a record Sh180.57 billion (approximately $1.22 billion) in 2023, representing a 31% rise in the value of exports.
The potential buyout comes after Browns Investments, a Sri Lankan business, acquired all tea estates owned by Lipton Teas and Infusions Kenya yesterday, subject to regulatory permission.
In addition, the Colombo-based firm acquired Lipton’s subsidiaries in Rwanda and Tanzania. As part of the agreement, the Bomet and Kericho communities, where the tea estates are located, would receive a 15% interest in the newly acquired company.
Also Read: Tea Farmers To Reap Big As Gov’t Secures Lucrative Deal Abroad
