NAIROBI, Kenya, May 8 – B Commodities ME (FZE), a firm incorporated in the United Arab Emirates (UAE), is set to acquire a significant share in Limuru Tea, further aiming for indirect control and beneficial ownership.
In a public announcement, the company announced that 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.
The notice further stated that upon completion of the agreement, the firm will indirectly acquire effective control and beneficial shareholding of the 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 firm continued.
“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 latest statistics from the Kenya Tea Board, the country’s tea export earnings stood at a record Sh180.57 billion (about $1.22 billion) in 2023, which represented a 31 percent increase in the value of exports.
The proposed buyout comes after Browns Investments, a Sri Lankan company, yesterday acquired all tea estates owned by Lipton Teas and Infusions Kenya, pending regulatory standards clearance.
In the deal, the Colombo-based firm also took over other Lipton’s subsidiaries in Rwanda and Tanzania.
As part of the deal, Bomet and Kericho communities, where the tea estates are located, will be given a 15 percent stake in the newly bought company.
It also announced that it will jointly create a Community Welfare Trust with an initial Sh1 billion investment to address other challenges facing local communities.
