Camellia PLC
13 April 2007
Camellia Plc
Kakuzi Limited ('Kakuzi')
13th April 2007
Kakuzi, a company listed on both the Nairobi Stock Exchange and London Stock
Exchange and in which the Camellia Plc group has a 50.7% interest, has released
the following announcement:
Proposed Sale of Siret Tea Company Limited
The Directors of Kakuzi Limited ('Kakuzi') wish to advise its shareholders and
the public that Kakuzi is in negotiations which may lead in due course to the
sale of the Siret Tea Estate and Factory. The proposed transaction is subject to
the obtaining of all necessary regulatory approvals and exemptions, including
the approval of the shareholders of Kakuzi at the Annual General Meeting to be
held on 22nd May 2007. The proposals are summarised below:
1. Siret Tea Estate and Factory and its associated business will be
transferred to Kakuzi's dormant subsidiary Siret Tea Company Limited.
2. The acquisition of the shares in Siret Tea Company Limited (the 'Siret
Shares') will be undertaken by EPK Outgrowers Empowerment Project Company
Limited (the 'Empowerment Company'), a company mainly owned by smallholders.
3. The Siret Shares will be sold over a period of up to 7 years to the
Empowerment Company.
4. It is expected that the Empowerment Company will purchase not less than
10% of the Siret Shares in 2007 and a minimum of 7.5% of the Siret Shares in
each year thereafter until the Empowerment Company has acquired 49.5% of the
Siret Shares.
5. Once the Empowerment Company has acquired 49.5% of the Siret Shares, it
will have the option to acquire the remainder of the Siret Shares as one lot.
This development may have a material effect on the value of the shares of
Kakuzi. Accordingly, shareholders are advised to exercise caution when dealing
in the shares until a further announcement is made.
For further enquiries please contact Camellia Plc
Malcolm Perkins, Chairman
01622 746655
13th April 2007
This information is provided by RNS
The company news service from the London Stock Exchange