Nairobi, Sept 11 - Kenyan regulator Capital Markets Authority has approved a request by Brooke Bond to buy out minority shareholders of Unilever Tea Kenya (UTKL), a Brooke Bond representative said on Thursday.
UK-based Brooke Bond has an 88.24 percent stake in UTKL, which runs vast tea estates in Kenya's Rift Valley region, and it wants to buy out the balance of 5.75 million shares, each valued at 62 Kenya shillings ($0.876).
"This move to acquire the third party shareholding in UTKL is consistent with Unilever's strategy to achieve a preferred wholly owned structure within East Africa," Brooke Bond's Pascal Germain said in a statement.
He added the next step is the circulation of an offer document to the minority shareholders and eventual delisting, depending on the offer's take-up rate.
Trading of UTKL shares at the Nairobi Stock Exchange was suspended but should the deal fall through, it will resume on October 19.