Unilever: to become Dutch-based single holding company
(CercleFinance.com) - Unilever plans to simplify its corporate structure from two legal entities, based in the Netherlands and the UK, into a single legal entity incorporated in the Netherlands, the personal products giant said on Thursday.
The group said the decision reflects the fact that its N.V. shares, which are traded in Amsterdam, account for approximately 55% of the group's combined ordinary share capital, with greater liquidity than those in London (PLC).
Unilever shares will continue to be listed in London, Amsterdam and New York.
"We view this very positively as it will remove unnecessary complexity and facilitate portfolio changes," said Virginie Roumage, an analyst at Bryan Garnier.
To get rid of its traditional dual-headed structure, Unilever will create a "one share, one vote" principle for all shareholders and will cancel preference shares.
To transform into a simpler, more focused business, Unilever is also developing its structure to adopt three divisions: Beauty & Personal Care, Home Care, and Foods & Refreshment.
While the headquarters of the first two businesses will be located in London, the headquarters of the food division will still be based in Rotterdam.
However, all these announcements were widely expected by investors and the market's reaction was relatively muted this morning: the Amsterdam-listed shares are currently 0.3% lower at 43.3 euros.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The group said the decision reflects the fact that its N.V. shares, which are traded in Amsterdam, account for approximately 55% of the group's combined ordinary share capital, with greater liquidity than those in London (PLC).
Unilever shares will continue to be listed in London, Amsterdam and New York.
"We view this very positively as it will remove unnecessary complexity and facilitate portfolio changes," said Virginie Roumage, an analyst at Bryan Garnier.
To get rid of its traditional dual-headed structure, Unilever will create a "one share, one vote" principle for all shareholders and will cancel preference shares.
To transform into a simpler, more focused business, Unilever is also developing its structure to adopt three divisions: Beauty & Personal Care, Home Care, and Foods & Refreshment.
While the headquarters of the first two businesses will be located in London, the headquarters of the food division will still be based in Rotterdam.
However, all these announcements were widely expected by investors and the market's reaction was relatively muted this morning: the Amsterdam-listed shares are currently 0.3% lower at 43.3 euros.
Copyright (c) 2018 CercleFinance.com. All rights reserved.