KENYA – The Capital Markets Authority (CMA) has approved Lipton Teas and Infusions Kenya Plc’s request to withdraw its initial offer to acquire the remaining shares of Limuru Tea. 

On July 4, 2022, Lipton Teas proposed to shareholders to acquire up to 100% of the ordinary shares in Limuru Tea Plc that were not already legally or beneficially owned by Lipton Teas. 

This move was prompted by an indirect change of ownership and effective control of Limuru Tea due to Cuppa Bidco B.V.’s acquisition of Ekaterra B.V., the company’s indirect holding entity.  

According to a statement by Lipton Teas, the company submitted a draft offeror’s statement of the takeover scheme (Offeror’s Statement) concerning Limuru Tea to the CMA for its approval, in line with Regulation 4(4) of the Take-over Regulations. 

However, the CMA suspended Cuppa’s mandatory takeover process for acquiring the remaining shares in Limuru Tea (MTO) through a letter dated July 15, 2022. This suspension notice was published on August 4, 2022, and has remained in effect since. 

On May 9, 2023, Lipton Teas applied to the CMA for approval to withdraw the offeror’s statement, expressing its decision not to proceed with the MTO.  

The company has advised shareholders and the investing public to exercise caution when dealing in Limuru Tea ordinary shares on the Nairobi Securities Exchange pending further announcements. 

This development coincides with a notice of intention by B Commodities ME (FZE), a UAE firm, regarding the indirect acquisition of Lipton Kenya’s shareholding in Limuru Tea.  

In a related move, Browns Investments, a Sri Lankan company, recently announced its acquisition of all tea estates owned by Lipton Teas and Infusions Kenya, pending regulatory standards clearance.  

The Colombo-based firm has also taken over other Lipton subsidiaries in Rwanda and Tanzania.

Recently, a section of the Kipsigis clan in Kericho county contested the sale of Lipton Tea estates to Browns Investment PLC claiming the land on which the estates reside belongs to the clan and that they were not consulted during the sale process.

The clan is seeking 100 percent of ownership shares, citing historical land injustices and forced eviction from their ancestral land.

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