10.05.18
In the end, Unilever brass just couldn't subdue their polycephalic tendencies. The Board withdrew its proposal to simplify Unilever's dual-headed legal structure. In developing the proposal, the board was guided by the opportunity to unlock value for our shareholders by creating a stronger, simpler and more competitive Unilever that is better positioned for long-term success, according to company executives.
In a statement, Unilever said: We have had an extensive period of engagement with shareholders and have received widespread support for the principle behind simplification. However, we recognise that the proposal has not received support from a significant group of shareholders and therefore consider it appropriate to withdraw.
"Unilever has built a long track record of consistent and competitive performance," said Chairman Marijn Dekkers. "The Board continues to believe that simplifying our dual-headed structure would, over time, provide opportunities to further accelerate value creation and serve the best long-term interests of Unilever.
"The Board will now consider its next steps and will continue to engage with our shareholders. We will proceed with the plan to cancel the NV preference shares, further strengthening our corporate governance."
According to a report in The Financial Times, Unilever shareholders were concerned that the proposed consolidation of headquarters and a move to The Netherlands would lead to a delisting on the FTSE.
In September, Unilever said it would simplify its corporate structure with a move from two UK and Dutch legal entitities into a single holding company. Under terms of the plan, Unilever NV would have been incorporated in the Netherlands and listed in London, Amsterdam and in the the US through ADSs. One ordinary share in the capital of New Unilever NV will be issued for each NV ordinary share and for each PLC ordinary share. The new Unilever NV shares would have started trading on December 24.
In a statement, Unilever said: We have had an extensive period of engagement with shareholders and have received widespread support for the principle behind simplification. However, we recognise that the proposal has not received support from a significant group of shareholders and therefore consider it appropriate to withdraw.
"Unilever has built a long track record of consistent and competitive performance," said Chairman Marijn Dekkers. "The Board continues to believe that simplifying our dual-headed structure would, over time, provide opportunities to further accelerate value creation and serve the best long-term interests of Unilever.
"The Board will now consider its next steps and will continue to engage with our shareholders. We will proceed with the plan to cancel the NV preference shares, further strengthening our corporate governance."
According to a report in The Financial Times, Unilever shareholders were concerned that the proposed consolidation of headquarters and a move to The Netherlands would lead to a delisting on the FTSE.
In September, Unilever said it would simplify its corporate structure with a move from two UK and Dutch legal entitities into a single holding company. Under terms of the plan, Unilever NV would have been incorporated in the Netherlands and listed in London, Amsterdam and in the the US through ADSs. One ordinary share in the capital of New Unilever NV will be issued for each NV ordinary share and for each PLC ordinary share. The new Unilever NV shares would have started trading on December 24.
