Unilever Indonesia Releases Ownership Of A Number Of Tea Business Assets Worth IDR 84.6 Billion

Photo: Doc. Unilever Indonesia

JAKARTA - PT Unilever Indonesia Tbk (UNVR) has released the ownership of a number of assets in its tea business unit to Ekaterra. The value reached 5.49 million euros, or around Rp. 84.6 billion.

These business assets include production machinery and equipment located in Cikarang and Agriwangi. The transaction comes after UNVR's parent company Unilever Plc sold its tea business Ekaterra for US$5.1 billion to CVC Capital Partners in November 2021.

"In connection with the transfer of business assets from the company to Ekaterra based on the Asset Transfer Agreement, Ekaterra will make payments to the company in the amount of 5.49 million euros," Unilever Indonesia management wrote in an information disclosure on the Indonesia Stock Exchange (IDX) website, quoted Wednesday, June 8.

In line with the process of transferring these business assets, UNVR is also allowed to use the said business assets without incurring any fees to produce tea products and supplements during the transfer period.

The Company will continue to use its business assets to produce export products for Ekaterra during the transition period, until such time as the business assets are transferred to the Ekaterra location and can operate independently. Production activity contracts between the company and Ekaterra are business in general.

Unilever Indonesia's domestic tea business is actually not included in the sales transactions carried out by Unilever Plc. However, as part of the transaction and to optimize costs and operations locally, Unilever Indonesia decided to sell its production machinery and equipment assets located in Cikarang and Agriwangi to Ekaterra.

For your information, Ekaterra has a portfolio of 34 brands including Lipton, PG Tips, Pukka, T2 and TAZO, and generated revenues of around 2 billion euros last year. Unilever said it targets to complete the sales process in the second half of 2022.