Kakuzi Regulatory News (KAKU)

16 Apr 2007 12:56

Kakuzi Ld16 April 2007 KAKUZI LIMITED CAUTIONARY 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 subjectto the 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 summarized below: 1. Siret Tea Estate and Factory and its associated business will betransferred 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 CompanyLimited (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 theEmpowerment Company. 4. It is expected that the Empowerment Company will purchase not lessthan 10% of the Siret Shares in 2007 and a minimum of 7.5% of the Siret Sharesin each year thereafter until the Empowerment Company has acquired 49.5% of theSiret 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. G H Mclean Group Managing Director Nairobi 11th April 2007 This information is provided by RNS The company news service from the London Stock Exchange