TOP NEWS: Unilever Completes Legal Unification Under UK Parent Firm

(Alliance News) - Unilever PLC on Monday announced the formal completion of the unification of ...

Alliance News 30 November, 2020 | 8:46AM
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(Alliance News) - Unilever PLC on Monday announced the formal completion of the unification of its group legal structure under one single parent company.

The Anglo-Dutch consumer goods giant said it now trades with one market capitalisation, one class of shares and one global pool of liquidity, while maintaining its listings in Amsterdam, London and New York.

The unification will enact no change to any of Unilever's operations, activities and staffing levels, with the headquarters of Unilever's Foods & Refreshment division remaining in Rotterdam, the Netherlands and the Home Care and Beauty & Personal Care divisions remaining in the UK.

In June, Unilever first announced its intent to unify its legal structure under a UK parent company, under the belief that it would increase its strategic flexibility for developing its portfolio, including through equity-based acquisitions or demergers.

Back in October 2018, the group had withdrawn a proposal to simplify under a Dutch entity and move its headquarters to Rotterdam from London, after the plan drew opposition from its UK shareholders.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 is an important day for Unilever and we would like to thank our shareholders for their strong support of our Unification proposals, which give us greater flexibility for strategic portfolio change, remove complexity and further improve governance," said Chair Nils Andersen.

New shares in Unilever PLC amounting to 1.46 billion will be issued and allotted in London and Amsterdam, while Unilever American Depositary Shares will be admitted to trading in New York when markets there open.

Following the issue, Unilever will have 2.63 billion shares issued overall.

Shares in Unilever were up 1.5% at 4,655.00 pence on Monday morning in London, while its Amsterdam shares were up 1.3% at EUR51.76.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved

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