According to Reuters – Unilever UK shareholders back unification plan. Shareholders in Unilever Plc ULVR.L have approved the company’s plan to end its 90-year-old dual-headed structure in favour of a single London-based entity. The Anglo-Dutch consumer goods company said on Monday. Unilever unification proposal passed with the support of more than 99% of shares voted.
Unilever released the results during shareholder meetings streamed online due to the COVID-19 pandemic. Investors in Dutch-listed Unilever NV UNA.AS approved the move with 99.4% support last month.
Unilever wants to unify on Nov. 29 that dates back to the merger of British soap maker Lever Brothers and Margarine Unie in the Netherlands.
The maker of Dove soap, Hellmann’s mayonnaise and Ben & Jerry’s ice cream says the dual structure hampers its ability to conduct acquisitions and asset sales quickly, such as the planned sale of its tea business.
Such flexibility is key to Unilever’s ambition to shift its portfolio into higher-growth areas like premium beauty. Unilever has said this will become even more important as a result of the pandemic.
The final steps towards completing the unification include UK High Court hearings on Oct. 23 and Nov. 2, with the Dutch-listed shares ceasing trading after Nov. 27.
The only potential worry for Unilever is an “exit tax” proposed by a Dutch opposition party that could cost the company up to 11 billion euros ($13 billion).
A top Dutch legal body said on Friday the current plan appeared at odds with fundamental principles of law. The opposition party has re-submitted its proposal for consideration with amendments, though no debate has been scheduled on it in parliament.