19th Sep 2018 06:52
LONDON (Alliance News) - M&G Investments is the latest Unilever PLC shareholder to oppose the consumer goods company's proposal to move its headquarters to the Netherlands, The Times newspaper reported Wednesday.
According to the newspaper, M&G - Unilever's thirteenth largest shareholder - came out against Unilever's plans to scrap its dual UK-Dutch structure, joining other investors who are against it such as Aviva Investors, Lindsell Train and Columbia Threadneedle. Together, the four shareholders own more than 5% of Unilever.
On Monday, Aviva Investors revealed plans to vote against the Marmite and Dove soap maker's proposal as it does not believe it is in the best interest of investors.
A spokesman for Unilever said the company had the support of most of its shareholders, the Times reported.
Next month, Unilever will hold meetings with both its UK and Dutch shareholders to secure the majority of votes for the move. The company will need 75% favourable votes from UK shareholders and 50% from Dutch investors for the relocation to take place.
If approved, the move will mean that Unilever will be forced out of the FTSE 100 index, forcing passive funds that use it as benchmark to sell their holdings, one of the main reasons behind investors concerns.
Last week, Unilever said it will delist the shares of its current UK and Dutch entities on December 21 and list shares of its new single Dutch entity on December 24, as part of a previously announced simplification strategy.
Shares of new single entity will be listed in Amsterdam, London and in the form of American depositary shares in New York.
The NV shareholder meeting will take place in Rotterdam, Netherlands, on October 25 and the PLC shareholder meeting will take place in London on October 26.
https://www.thetimes.co.uk/edition/business/revolt-over-unilever-s-move-grows-079gzn7dp
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