Unilever Nigeria Completes Hand over Of Tea Business To TeaCo Group
Unilever Nigeria Plc has formally completed the transfer of its Tea business to a newly-incorporated tea company in Nigeria, TeaCo Group.
The food and beverage company said although the transfer has received approval from its board of directors, it however, awaits the endorsement of its shareholders and other regulatory bodies.
Unilever, in a statement by Abidemi Ademola, General Counsel and company secretary, said the assets being transferred by Unilever Nigeria plc to New TeaCo include production assets and other tangible assets.
The company had on 23 July 2020 announced the completion of the review of the tea business, which subsequently culminated in the planned separation of its Tea Business on 25th February, 2021.
However, in an update, the company said despite the completion of the separation, Unilever Nigeria plc stated that it will retain ownership of the site at Agbara.
The statement read, “On 23 July 2020, following completion of a strategic review, Unilever plc (“Unilever” and, together with its group companies, the “Unilever Group”) announced its intention to separate its global tea business, including the retail and food solutions businesses,
plantations, T2 and Pukka (the “Tea Business”).
“Further to the announcement made on 25th February, 2021 about Unilever Nigeria Plc’s
planned separation of its Tea business as part of the global separation, this is to notify
The Nigerian Exchange Ltd. and our esteemed shareholders that on 30th April, 2021, Unilever Nigeria plc’s Board of Directors approved the steps required to implement the separation of the Tea Business in Nigeria. Subject to approval by the Company’s shareholders and any regulatory approvals, the Nigeria Tea Business will be transferred
to a newly-incorporated tea company in Nigeria (“New TeaCo”), held under a newly�incorporated tea holding company to create a dedicated tea group within the Unilever Group (“TeaCo Group”).”The assets being transferred by Unilever Nigeria plc to New TeaCo include production assets and other tangible assets used exclusively in relation to the Tea Business; distribution rights to Tea products in Nigeria and export markets; and locally owned unregistered intellectual property rights. Unilever Nigeria plc will retain ownership of the site at Agbara. Unilever and Unilever Nigeria plc will also provide certain intercompany services to the New TeaCo and the TeaCo Group for a transitional period.”
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