The board of Unilever Nigeria Plc has approved the transfer of its tea business to a new company called New TeaCo.
This was disclosed by the organisation in a notice filed to the Nigerian Exchange (NGX) Limited on Friday, May 14, 2021.
It was revealed that the approval was given on April 30, 2021, and it means the new firm will handle the tea brands of Unilever Nigeria, including the popular Lipton, going forward.
With this development, Unilever Nigeria will transfer its tea 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 to the new company.
However, the ownership of the factory at Agbara, Ogun State, would remain with Unilever Nigeria, while for a period of time, Unilever Nigeria will also provide certain intercompany services to the new organisation, according to the disclosure.
In the statement signed by the company secretary, Mrs Abidemi Ademola, it was stressed that the transfer of the tea business is still subject to shareholders and regulatory approvals.
“On July 23, 2020, following completion of a strategic review, Unilever Plc announced its intention to separate its global tea business, including the retail and food solutions businesses, plantations, T2 and Pukka.
Further to the announcement made on February 25, 2021, about Unilever Nigeria Plc’s planned separation of its tea business as part of the global separation, this is to notify the NGX and our esteemed shareholders that on April 30, 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,” the statement read.
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