Camellia Regulatory News (CAM)

13 Apr 2007 15:54

Camellia PLC13 April 2007 Camellia Plc Kakuzi Limited ("Kakuzi") 13th April 2007 Kakuzi, a company listed on both the Nairobi Stock Exchange and London StockExchange and in which the Camellia Plc group has a 50.7% interest, has releasedthe following announcement: Proposed Sale of Siret Tea Company Limited The Directors of Kakuzi Limited ("Kakuzi") wish to advise its shareholders andthe public that Kakuzi is in negotiations which may lead in due course to thesale of the Siret Tea Estate and Factory. The proposed transaction is subject tothe obtaining of all necessary regulatory approvals and exemptions, includingthe approval of the shareholders of Kakuzi at the Annual General Meeting to beheld 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 ofKakuzi. Accordingly, shareholders are advised to exercise caution when dealingin the shares until a further announcement is made. For further enquiries please contact Camellia PlcMalcolm Perkins, Chairman01622 74665513th April 2007 This information is provided by RNS The company news service from the London Stock Exchange