Unilever prepares for the future

Unilever has announced the changes it will be implementing in order to improve its business.

It is hoped that the changes will further drive long-term performance and shareholder value, and build upon its Connected 4 Growth programme.

Firstly, the company is evolving its structure to be based on three divisions: Foods & Refreshment, Beauty & Personal Care, and Home Care.

The headquarters of the Foods & Refreshment Division will continue to be based in Rotterdam.

Additionally, Unilever intends to simplify from two legal entities, N.V. and PLC, into a single legal entity incorporated in The Netherlands. This reflects the fact that the shares in N.V. account for approximately 55% of the group’s combined ordinary share capital, and trade with greater liquidity than PLC shares. Unilever will continue to be listed in London, Amsterdam and New York.

It is hoped that these changes will further strengthen Unilever’s corporate governance, creating a ‘one share, one vote’ principle for all shareholders. Upon completion, the N.V. preference shares will be cancelled, and it is intended to close the N.V. Trust Office and terminate the related depositary receipt structure. Unilever will also continue to apply both the UK and Dutch corporate governance codes.

Marijn Dekkers, chairman of Unilever, says, “Unilever’s Board is fully committed to delivering long-term performance and sustainable value for shareholders. The Board believes the move to three divisions and the simplification of our corporate structure will create a simpler, more agile and more focused company with increased strategic flexibility for value-creating portfolio change.

“Our decision to headquarter the divisions in the UK and the Netherlands underscores our long-term commitment to both countries. The changes announced today also further strengthen Unilever’s corporate governance, creating for the first time in our history a ‘one share, one vote’ principle for all our shareholders.”

Unilever’s employment of 7,300 people in the UK and 3,100 people in the Netherlands will be unaffected by the changes that have been announced.

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