Unilever: scraps plans to simplify dual-headed structure

(CercleFinance.com) - Unilever said on Friday that it has decided not to proceed with plans to simplify its dual-headed legal structure, which is currently split between the UK and the Netherlands, citing a lack of shareholder support.


In a statement, the Anglo-Dutch consumer goods giant said the proposal "has not received support from a significant group of shareholders" and has therefore decided not to proceed.

The simplification of the company's parent company structure from two legal entities, NV and PLC, into a single holding company incorporated in the Netherlands, was set to be completed in December.

The company will now consider its "next steps" and will proceed with the plan to cancel the so-called NV preference shares in order to strengthen governance, it said.

Index provider FTSE Russell said last month that Unilever shares would have been kicked out of the FTSE 100 index of British blue-chip stocks as a result of the company's new structure being based in the Netherlands and listed on Euronext Amsterdam.

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