Unilever Nigeria Plc’s Board approves next steps on separation of the tea business in Nigeria

The Board of Directors of Unilever Nigeria Plc has approved that the Nigeria tea business will be transferred to a newly-incorporated tea company in Nigeria, held under a newly-incorporated tea holding company to create a dedicated tea group within the Unilever Group.

This was made known by Mrs. Abidemi Ademola, General Counsel WA & Company Secretary, in a dispatch to all stakeholders, subject to approval by regulatory authorities and shareholders.

The statement is titled, “Further notice to shareholders on separation of Unilever Nigeria Plc tea business”

It 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 30thApril, 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 Nigeriaand 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.”