--Unilever said it plans to unify its legal structure under a single parent company

--The Anglo-Dutch company said it will create a simpler entity under its British structure

--The move seeks to give Unilever a greater flexibility for managing its portfolio after the pandemic

 
   By Adria Calatayud 
 

Unilever PLC said Thursday that it plans to unify its legal structure under a single parent company, as the company seeks greater flexibility for managing its portfolio in the postpandemic world.

The Anglo-Dutch consumer-goods giant, which makes Dove soap and Ben & Jerry's ice cream, intends to consolidate its structure under the Unilever PLC umbrella, in a fresh attempt to move away from its current dual structure after a proposal two years ago was trashed due to lack of support from some shareholders.

Unilever said the unification will give it greater strategic flexibility and remove complexity as it seeks to accelerate the pace of portfolio change as part of an evaluation of its categories and brands that began last year, including through equity-based acquisitions or demergers.

The company said having as much flexibility and responsiveness as possible will be critically important in the business environment created by the coronavirus pandemic.

A previous proposal to consolidate its British and Dutch legal structure in the Netherlands was withdrawn in October 2018, after the plan didn't receive support from a significant group of shareholders. That move followed a monthslong review triggered by an unwelcome $143 billion takeover approach from Kraft Heinz Co.

This time around, the company's board said it considers unifying its structure under Unilever PLC as the best practical option to achieve its goal.

Unilever said it expects that its shares will continue to be included in the FTSE 100, London's blue-chip index, and will be applying for an additional listing of Unilever PLC shares on Euronext Amsterdam. Two years ago, the lack of guarantees over whether the company would retain its place in the FTSE 100 was met with resistance from investors.

Investors will share the same legal, ownership, dividend, governance and capital distribution rights in a single parent company, Unilever said.

"We remain committed to the Netherlands and the U.K. and there will be no change to Unilever's footprint in either country as a result of the proposed change to Unilever's legal parent structure," Chairman Nils Andersen said.

The unification will be implemented through a cross-border merger between Unilever PLC and Unilever NV, under which Unilever NV shareholders will receive one new Unilever PLC share per each share held, the company said.

Shares in London at 0720 GMT were up 1.7% at 4,454 pence.

 

Write to Adria Calatayud at adria.calatayud@dowjones.com

 

(END) Dow Jones Newswires

June 11, 2020 03:56 ET (07:56 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
FTSE 100
指数チャート
から 2 2024 まで 3 2024 FTSE 100のチャートをもっと見るにはこちらをクリック
FTSE 100
指数チャート
から 3 2023 まで 3 2024 FTSE 100のチャートをもっと見るにはこちらをクリック