CMA nods Unilever Tea takeover

September 11, 2008
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, NAIROBI, September 11 – Brooke Bond Group’s bid to take over Unilever Tea Kenya has now been sanctioned by the market’s regulator.

The Capital Markets Authority (CMA) authorised the deal on Wednesday, which will see Brooke Bond Group Limited (BBGL) acquiring third party shareholding in Unilever Tea.

Currently, Brooke Bond Group, which is part of the Unilever PLC Group, holds 88.24 percent stake in Unilever.

The UK-based company applied to CMA in August for approval of the offer document by which it proposes to acquire the 11.8 percent shareholding in Unilever Tea at a cost of Sh356.5 million.

Unilever has on the other hand applied to Nairobi Stock Exchange and the CMA to have its shares suspended from trading at the bourse.

BBGL’s representative Pascal Germain, said in a statement issued Thursday that he was delighted on receipt of the CMA approval and reaffirmed the company’s commitment to doing business in Kenya.

Germain said the new shareholding structure would not diminish the company’s contribution to the country and the economy.

Brooke Bond will be required to issue its offer document to the minority shareholders of Unilever Tea within five days of approval in line with the CMA regulations.

Unilever Tea will then be required to circulate the Offer Document to its shareholders within 14 days of receipt of the document from BBGL.

The offer period will run from September 12 to October 28.

Minority Unilever Tea shareholders who wish to accept the offer of Sh62 per share are expected to return duly completed Forms of Acceptance to the authorised agents within the 30 day offer period.  

The results of the offer are expected to be announced within 10 days of the closing of the offer.

The success of this Offer would lead to Unilever Tea’s eventually delisting from the local bourse.

Brooke Bond Group has other subsidiaries in Africa which includes Unilever Tea Tanzania.

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