Unilever ending dual Anglo-Dutch structure
Originally the business comprised of the separate UK PLC and Netherlands NV companies which acted jointly. Now, the two separate classes of shares will become one, but will still trade across London, Amsterdam and New York, according to a statement released by Unilever.
Bloomberg reported that the company is correct in noting that a unified Unilever could have demerged its spreads business with ease, instead of selling it to private equity earlier this year.
Unilever said in a statement the latest move will result in shareholders receiving shares in the capital of New Unilever NV. The proposed simplification is subject to some conditions, which includes the approval of shareholders in NV and PLC and applicable regulatory consents. The executive of the UK Takeover Panel has confirmed that the UK Takeover Code will not apply to the simplification transaction.
Unilever NV shareholder and depositary receipt holders will hold meetings in Rotterdam and PLC shareholder meetings will take place in London in October.
The expected last day of trading in NV and PLC shares and completion of simplification is set for December 2018. While the dealings in the New Unilever NV is set to commence also on the same month.
Bloomberg said Unilever shares have performed better than Nestle SA, Procter & Gamble Co., Kraft Heinz Co., Danone SA and Colgate this year, in dollar terms.