Unilever simplifies its business structure
The shift will see the current parent company structure of two legal entities (UK and Dutch) become one single holding company, and is set to conclude in December.
From this point, shares in the firm are set to start trading.
According to Unilever, which owns Dove, Axe and Vaseline, this simplification will be achieved through a UK scheme of arrangement and a Dutch legal merger.
Commentators have described the switch to a simplified business structure as ‘much-needed’.
Unilever itself, in its simplification prospectus, has said that the company considers it ‘extremely unlikely’ that the New NV Ordinary Shares will be eligible for inclusion in the FTSE 100.
One share for each share
One ordinary share in the capital of New Unilever NV will be issued for each NV ordinary share and for each PLC ordinary share, resulting in shareholders receiving shares in the capital of New Unilever NV that represent an equivalent economic interest, the company explains.
While the intended timeline sees 21 December 2018 as the expected last day of trading in NV and PLC shares, the shift is subject to certain conditions.
These include 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.
The EU Prospectus, US Prospectus, Scheme Document and shareholder documentation relating to simplification are available, subject to applicable securities laws, on the Unilever website.
