In a corporate action dated 12th May, 2021, and signed by the Genera; Counsel WA & Company Secretary, Abidemi Ademola (Mrs), Unilever Nigeria Plc provided further notice to its Shareholders on separation of Unilever Nigeria Tea Business.
On 23 July 2020, following the completion of a strategic review, Unilever Plc announces its intention to separate its global tea business, including the retail and food solutions businesses, plantations T2 and Pukka (the “Tea Business”).
Unilever’s global tea business includes leading brands such as Lipton, Brooke Bond and PG Tips.
In the corporate release seen by Investogist, It reads;
Further to the announcement made on 25th February, 2021 about Unilever Nigeria Plc’s planned separation of its Tea business as part of the global separation, this is to notify The Nigerian Exchange Ltd. and our esteemed shareholders that on 30th April, 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”).
Unilever Nigeria Plc will be transferring assets to New TeaCo, and these 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.
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A review of Unilever Nigeria Plc Annual Report for the year ended 31 December 2020, shows that the Food Products segment of the Business accounts to roughly 50-52% of Unilever Nigeria.
- The segment accounted for N34.109 billion revenue of the company, out of a total of N61.959 billion
- The segment accounted of a Loss of N2.524 billion before taxation. out of a total loss of N4.586 billion before taxation
- Unilever reported that its Property, plant and equipment was worth N27.370 billion as at 31st December 2020, N14.105 billion of that belonged to the Food Products segment.
Unilever operates two business segments; Food products category and Home & Personal Care category.
Foods – including sales of tea and savoury products
Home and Personal Care – including sales of fabric care, household cleaning, skin care and oral care products
Although the process of separation is well on the way, the financial impact of the separation is still unknown.
The proposed separation was put to Shareholders at the Annual General Meeting of the company held on May 6, 2021.
About the Company (NSE Ticker: UNILEVER)
Unilever Nigeria Plc. was established in 1923 as a soap manufacturing company – West Africa Soap Company– by Lord Leverhulme. It later became known as Lever Brothers Nigeria Plc. Today, it is the longest serving manufacturing organization in Nigeria.
After a series of mergers and acquisitions, the Company diversified into manufacturing and marketing of foods, home, beauty and personal care products. These mergers and acquisitions resulted in the absorption of Lipton Nigeria Limited in 1985, Cheesebrough Industries Limited in 1988 and Unilever Nigeria Limited in 1996.
The Company changed its name to Unilever Nigeria Plc. in 2001 in line with the global strategic direction of the business.
The Company was quoted on the Nigerian Stock Exchange in 1973 and is a truly multi-local, multinational organization with international and local brands in her portfolio.
The international brands include Close-Up toothpaste, Pepsodent toothpaste, LUX beauty soap, Lifebuoy soap, Rexona, Vaseline lotion and Vaseline Petroleum Jelly in the Personal Care division of the business; Lipton Yellow Label Tea and Knorr bouillon cubes in the Foods division; and OMO Multi-Active Detergent, Sunlight washing powder, Sunlight washing bar soap and Sunlight Dish washing liquid and Sunlight Multipurpose washing liquid in the Home Care division. Other Regional and local jewels include the Pears Baby Products range, Glen Tea and Royco bouillon cubes.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
