15th Mar 2018 08:43
LONDON (Alliance New) - Anglo-Dutch consumer goods giant Unilever PLC said Thursday it will simplify itself into a single legal entity incorporated in the Netherlands.
The company, which currently has headquarters in Rotterdam and London and two separately listed entities, a UK PLC and a Dutch NV, attributed the decision to the fact its Dutch NV shares account for 55% of the company's combined ordinary share capital and trade with greater liquidity than London-listed shares.
The company intends to maintain its stock listings in London, Amsterdam, and New York.
"The proposed simplification will provide greater flexibility for strategic portfolio change and help drive long-term performance," Unilever said.
The Dove soap maker also said that it will have three divisions - Beauty & Personal Care, Home Care, and Foods & Refreshment.
The headquarters of the Beauty & Personal Care Division and the Home Care Division will be in London, while the Foods & Refreshment Division's headquarters will continue to be in Rotterdam.
The company said the decision to headquarter the Beauty & Personal Care Division and the Home Care Division in London will secure nearly GBP1 billion per year of continued spend in the UK, including a significant commitment to research and development.
"The board believes the move to three divisions and the simplification of our corporate structure will create a simpler, more agile and more focused company with increased strategic flexibility for value-creating portfolio change. Our decision to headquarter the divisions in the UK and the Netherlands underscores our long-term commitment to both countries. The changes announced today also further strengthen Unilever's corporate governance, creating for the first time in our history a 'one share, one vote' principle for all our shareholders," Chairman Marijn Dekkers said.
Unilever said employees in the UK and Netherlands will be unaffected by the corporate restructuring programme.
London-listed shares in the company were down 0.6% at 3,798.00 pence in early trade on Thursday.
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