Williamson Tea, an agricultural firm majority-owned by Ngong Tea Holdings of United Kingdom, has announced the sale of Williamson House, its former headquarters office, for an estimated sum of SH500 million (US$5.14 million) to Lion of Kenya Insurance Company.
Lion of Kenya is the minority shareholder in Williamson Development, the company that owns the 10-storey office block. The deal that saw Williamson Tea’s head office relocate to Karen Office Park on Langata Road is expected to yield a special dividend that will be paid out to shareholders this fiscal year.
The company that has about one thousand small shareholders paid a dividend of Sh15 from the Sh97.50 it reported as the earnings per share in the fiscal year 2010, with cash reserves in excess of Sh4 billion.
Williamson Tea’s reported profits for this year will most likely skyrocket as a result of the deal signed in September 2011. The original value of the property was listed at Sh275 million last fiscal year, which likely indicates that the Sh225 million difference will be registered as a one-off capital gain.
Williamson Tea is one of only five stocks listed at the Nairobi Securities Exchange (NSE) to have survived a 12-month bear run.
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