Unilever looks to purchase legacy preference shares in a bid to make the the business “easier to understand”. Its success in fending off a takeover bid by Kraft Heinz raised questions about Unilever’s direction and governance.
Image credit: JPstock / Shutterstock.com
Unilever has launched a €450m (£407m) deal to buy back preference shares, a move it believes will improve its capital structure and corporate governance.
The vast majority of the preference shares are held by two investors, NN Investment Partners and ASR Nederland, and a public offer will be initiated so that any remaining preference shareholders can sell back to Unilever under the same terms. The shares were issued between 1927 and 1964.
The move follows Unilever’s rebuffal of a bid for the business by Kraft Heinz, which raised questions about the level of shareholder value it would subsequently deliver, and its multi-layered stoc
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda