Kenya: UAE Firm B Commodities Granted Exemption On Limuru Tea Takeover

Nairobi — The Capital Markets Authority has granted B Commodities ME (FZE), a firm incorporated in the United Arab Emirates (UAE), exemption from the requirements to make a takeover offer for Limuru Tea, a public limited company.

In a public announcement, the authority revealed the exemption was in accordance with Regulation 5 of the Capital Markets Takeover Regulations 2002.

It was therefore noted that B Commodities will not be making a takeover offer for Limuru Tea, which will remain listed on the Nairobi Securities Exchange.

“B Commodities hereby announces that the Capital Markets Authority has granted exemption from the requirements to make a takeover offer for Limuru Tea on the grounds set out in Regulation 5 of the Take-over Regulations,” the Authority stated.

According to the regulations, the authority may grant exemptions if the acquisition of a listed company is in distress or in any other circumstance that serves the public interest, including a management buyout involving a majority of the employees.

Earlier last month, the firm announced plans to acquire a significant share in Limuru Tea Company, aiming for indirect control and beneficial ownership, having completed a share purchase agreement with Ekaterra Company, which owns the largest share of Limuru Tea.

“On May 6 2024, Ekaterra and B Commodities entered into a share purchase agreement for the sale of the share capital of various Ekaterra subsidies and /or affiliates in East Africa including 95.56 percent of the total issued capital of Lipton tea,” the firm stated .

he ccompany,which was eyeing to acquire 51.99 percent of the share ccapital,submitted an application for exemption from compliance with the Capital Markets TTakeoverand Mergers Regulations,which would have required it to make an offer to acquire the remaining shares of Limuru Tea.