1st Oct 2018 12:23
LONDON (Alliance News) - Unilever PLC on Monday said all acquired Dutch preference shares will be canceled and will not be voted as part of the company's simplification plan proposals in the Dutch shareholder meeting or at any future shareholder meetings.
The consumer goods giant, which is behind brands like Hellmann's mayonnaise and Dove soaps, intends to de-list all of its UK and Dutch shares on December 21 before listing shares as a new single Dutch entity December 24.
Unilever, which was responding to investor inquiries in regards to governance matters, also said that the Dutch trust office will be closed as part of its simplification plan and termination of its depositary receipt structure. This structure cannot be reinstated without shareholder approval.
The FTSE-100 listed company said that it does not intend to introduce a 250 day "time-out period" in the event of hostile takeover, although the introduction of such a thing into Dutch law is currently being considered.
Under the simplification, board members will be re-elected annually. Those with a 3% shareholding will be able to call a meeting, while a 1% holding will allow for the tabling of a resolution, including a directorate change.
A number of the company's UK shareholders have already come out against the company's simplification plan, which will see Unilever depart from the FTSE 100 index and force any passive funds using it as their benchmark to sell their holdings.
Aviva Investors is to vote against the deal, as will M&G Investments, Lindsell Train and Columbia Threadneedle. The four companies have a combined stake of more than 5% in Unilever, which needs favourable votes from 75% of its UK shareholders and 50% of Dutch shareholders to push through changes.
London listed shares in Unilever were up 0.3% at 4,227.50 pence on Monday.
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