Unilever (LON:ULVR) will not be included in UK benchmark FTSE 100 index once it ends its dual-headed structure, FTSE 100 Russel has said. The news follows the Anglo-Dutch consumer goods giant’s announcement yesterday that it expects to complete the simplification of its holding company in December.
Unilever’s share price has fallen marginally into the red in today’s session, having given up 0.37 percent to 4,284.00p as of 12:41 BST. The shares are underperforming the broader UK market, with the FTSE 100 having climbed into positive territory and currently standing 0.22 percent higher at 7,289.89 points.
Anglo-Dutch consumer goods giant to lose spot in FTSE 100
FTSE Russell announced in a statement yesterday that it had noted the publication of Unilever’s prospectus detailing the proposed simplification of its structure, noting that New Unilever NV will no longer be eligible for inclusion in the FTSE 100 index. The index operator said that it will select the company to replace the Anglo-Dutch group in the FTSE 100 based on closing prices on December 19.
The news comes as investors prepare to vote on the group’s simplification plans on October 25 and October 26 in Rotterdam and London, respectively.
Unilever approach ‘discriminates against UK shareholders’
Reuters quoted Columbia Threadneedle Investments, a top-10 Unilever shareholder, according to Thomson Reuters data, as saying in a statement that it continued “to agree that restructuring Unilever makes sense, but are still of the view that Unilever’s approach discriminates against UK shareholders”.
The Anglo-Dutch group moved to simplify its dual structure in an effort to unlock value for shareholders following Kraft-Heinz’s failed bit.
The newswire notes that approval is needed from 75 percent of UK shareholders and 50 percent of Dutch shareholders.