The Board of Directors of Unilever Nigeria Plc has approved the commencement of the implementation process to separate the tea section of its business in Nigeria, the company announced on Friday.
The company had on July 23, 2020, announced her intention to separate the global tea business which included the retail and food solutions businesses, plantations, T2 and Pukka. This came at the heels of a strategic review.
According to a statement on the Nigerian Exchange Limited, a subsidiary of the NGX Group Plc, “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 and Unilever Nigeria Plc will also provide certain intercompany services to the New TeaCo and the TeaCo Group for a transitional period,”
Unilever Nigeria will retain ownership of the site at Agbara, the statement also said.
Azuka Edokobi is a Writer , a Farmer, a Supply Chain Expert and an Entrepreneur
