[2008-09-12]  CMA approves Unilever Tea takeover
CAPITAL Markets Authority has approved Brooke Bond Group Ltd (BBGL)’s proposal to buy out minority shareholders of Unilever Tea Kenya (UTKL).

BBGL, the majority shareholder in UTKL, applied to the regulator last month for approval of the offer document by which it proposes to acquire 11.8 per cent shareholding in UTKL, which it does not own.

In a statement on Thursday, BBGL’s representative Mr Pascal Germain, said the company would serve UTKL with the offer documents within five days.

He said UTKL would be required to circulate the offer document to its shareholders within 14 days of receipt of the document.

He said the offer period would run from today to October 28.

Minority UTKL shareholders who wish to accept the offer of Sh62 per share are expected to return forms of acceptance to authorised agents within the 30-day offer period.

The results of the deal will be known within 10 days of the closing of the offer.

"The move by BBGL to acquire the third party shareholding in UTKL is consistent with Unilever’s strategy to achieve a preferred wholly owned structure within East Africa," he said.

He, however, re-affirmed Unilever’s commitment to doing business in Kenya.

"Unilever had a longstanding history in the country, having operated here for more than 80 years, and the new shareholding structure will not diminish the company’s contribution to the country and the economy," said Germain.

Brooke Bond Group, which holds an 88.24 per cent stake in Unilever Tea Kenya, has offered to buy the remaining 11.76 per cent for Sh62 a share. If the offer is successful, the company intends to delist Unilever Tea Kenya from the Nairobi Stock Exchange.


Source: © 2008 THE STANDARD