10th Aug 2020 08:23
(Alliance News) - Anglo-Dutch consumer goods manufacturer Unilever PLC on Monday said the unification of the company's legal structure under a single parent company, Unilever PLC, is expected to complete over the weekend of November 21 and 22.
The company added that the expected last day of trading in Unilever NV shares, including Unilever NV shares in New York, will be November 20.
Unilever NV has set September 21 as its extraordinary general meeting date for securing investor approval for the unification proposal. Unilever PLC shareholder meetings will take place on October 12.
The company in June announced plans to consolidate its legal structure into a single parent company, two years after being prevented from becoming a solely Dutch entity by dissenting UK shareholders.
Back in October 2018, Unilever withdrew a proposal to simplify under a Dutch entity and move its headquarters to Rotterdam from London, after the plan drew opposition from its UK shareholders. The stock would have dropped out of the FTSE 100 index, forcing index funds to sell.
This time, Unilever intends to undertake a cross-border merger between Unilever PLC and Unilever NV. Under the merger, Unilever NV shareholders will receive one new Unilever PLC share in exchange for each Unilever NV share held.
The company will remain listed in London, Amsterdam, and New York, and the legal restructuring will not affect its operations, staffing levels or the manufacture and supply of products in both countries, the company said.
However, the group will be incorporated in the UK alone, with one class of shares and one market capitalisation.
In terms of operations, the Foods & Refreshment division will continue to be headquartered in Rotterdam, while the Beauty & Personal Care and Home Care businesses will continue to be headquartered in London.
The company had attributed its consolidation decision to an ongoing strategic review of its tea business.
In July, Unilever said that it had decided to form a separate entity for its tea business, which generated revenue of EUR2 billion in 2019. The company, however, intends to retain its tea businesses in India and Indonesia and partnership interests in the ready-to-drink tea joint ventures.
Shares in FTSE 100-listed Unilever were down 0.1% at 4,534.36 pence in London. Year-to-date the stock has gained 4.2% in value.
By Tapan Panchal; [email protected]
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