19th May 2014 10:51
LONDON (Alliance News) - Unilever PLC Monday said it had simplified its share structure by buying up the rights left in family trusts by William Hesketh Lever, a move that will boost its full-year core earnings per share by 2% by reducing the share count used in calculating it.
In a statement, the consumer goods giant said it had bought the rights, which are convertible into 70.9 million shares in 2038, for GBP715 million. That price is equivalent to GBP10.00 a share, a 63% discount to its closing price on Friday.
"I am very pleased that we have concluded this agreement with the trusts. It is good for all our shareholders. It is another step in the simplification of Unilever's capital structure, making Unilever easier to understand, and eliminating ahead of time the burden of a significant dilution of shareholders' interests," Unilever Chief Financial Officer Jean-Marc Huët said.
Unilever shares were up 1.2% at 2,736 pence Monday morning, one of the biggest gains on the FTSE 100.
By Steve McGrath; [email protected]; @SteveMcGrath1
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