Unilever Nigeria Plc at the weekend announced that its Board of Directors has approved the steps required to implement the separation of its tea business in Nigeria.
According to a statement obtained from the Nigerian Exchange Limited, the approval on April 30, 2021 followed the announcement made on February 25, 2021 about Unilever Nigeria’s planned separation of its tea business as part of the global separation.
Unilever Plc announced its intention to separate its global tea business, including the retail and food solutions businesses, plantations, T2 and Pukka on July23, 2020, following the completion of a strategic review, the company said.
Part of the statement read: “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.”
According to the statement, Unilever Nigeria 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,” it said.