The Board of Directors of Unilever Nigeria Plc has approved the steps required to implement the separation of the Tea business in Nigeria.
Recall that on the 23rd of July 2020, Unilever Nigeria Plc had announced its intention to separate its global tea business, including the retail and food solutions businesses, plantations, T2 and Pukka (the ‘’Tea Business’’), after a strategic review between the firm and its group of companies. This was followed by a subsequent circular issued on the 25th of February, 2021, reminding key stakeholders of the earlier announcement.
Sequel to these notices, Unilever Nigeria Plc finally announced that it obtained approval from its Board of Directors on the 30th of April, 2021 to finalize the separation of the tea business into a distinct company.
According to a recent disclosure issued by the firm, if ratified by the Company’s shareholders and other regulatory stakeholders, 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”).
Some of 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. However, Unilever Nigeria plc will retain ownership of the site at Agbara and will also provide certain intercompany services to the New TeaCo and the TeaCo Group for a transitional period.