Hindustan Unilever Ltd receives shareholders’ approval to spin off its ice-cream business into an independent entity, with a 1:1 share allocation, moving closer to listing in India.
Hindustan Unilever (HUL) has received overwhelming shareholder approval to demerge its ice-cream business, which includes popular brands such as Kwality Wall’s, Cornetto, and Magnum, into an independent listed entity.
The resolution for the “Scheme of Arrangement between Hindustan Unilever and Kwality Wall’s” was passed by 99.99% of votes cast through remote e-voting and e-voting at the shareholders’ meeting, held in compliance with the directions of the National Company Law Tribunal (NCLT).
HUL will issue shares of the new entity to existing shareholders on a 1:1 basis, maintaining proportional ownership. The demerger aligns with Unilever’s global strategy of separating its ice-cream business, allowing the new entity to focus exclusively on growth in the premium and mass ice-cream segments in India.
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Financial experts say the move is likely to unlock shareholder value by creating a distinct operational focus for the ice-cream business. Analysts expect the demerger to be completed within the current fiscal, followed by the listing of the new entity on stock exchanges.
HUL’s CFO has highlighted that the standalone structure will enable enhanced brand investments, improved operational efficiency, and better visibility for investors, positioning the ice-cream business for accelerated expansion in India’s rapidly growing frozen dessert market.
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