2nd Oct 2018 06:55
LONDON (Alliance News) - Schroders PLC has emerged as the latest Unilever PLC shareholder to come out against the FTSE 100-listed consumer goods proposal to move its head quarters to the Netherlands, The Times reported on Tuesday.
Jessica Ground, head of stewardship at the blue chip asset manager, which holds a 0.8% interest in Unilever, said that "understood the company's desire for simplification, but we do not believe this is the right decision for Unilever shareholders".
"We have previously expressed our concerns about the moves in the Netherlands towards protectionism, which undermines shareholder rights. In addition, our clients will be forced sellers of Unilever as a result of it exiting the FTSE UK indices," Ground added.
Later in October, 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.
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/schroders-joins-critics-of-unilever-plans-to-go-to-the-netherlands-2673whzgr
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