Leading personal care and consumer goods company, Unilever announced plans to spin off its tea business into a separate legal entity.
The company announced this via a press release published on the website of the Nigerian Stock Exchange. The update is coming at least 6 months after its Parent company Unilever Global announced plans to spin off of its Tea Business.
In January 2020, Unilever announced a strategic review of the global tea business, agreeing to retain the tea businesses in India and Indonesia, and the partnership interests in the ready-to-drink tea joint ventures.
The company also revealed the balance of its “tea brands and geographies and all tea estates have an exciting future, and this potential can best be achieved as a separate entity” paving the way for the implementation of a separation that will conclude this year. Unilever did not announce if it will own the entity that will be overseeing its Tea Business. The tea business that will be separated generated revenues of €2 billion in 2019.
Unilever Nigeria’s announcement confirms its Lipton segment will be spun off its balance sheet, a move that could potentially affect its top line revenue.
What you should know
The Food Products division which includes its tea and savoury segment reported a revenue of N34.71 billion in 2020, higher than the revenue of N31.91 billion the company made in 2019 through the sales of tea and savoury.
Unilever Nigeria is currently valued at N78 billion.