LONDON – Consumer goods giant Unilever PLC said on Friday its long-planned demerger of its ice cream unit will complete this weekend, with the new standalone company, The Magnum Ice Cream Company N.V. (TMICC), set to begin trading on three major exchanges next week.
The demerger, first announced in March, will become effective at 6:00 p.m. London time on Saturday, Dec. 6, the company said in a regulatory statement.
Admission of TMICC ordinary shares to listing and trading on Euronext Amsterdam, the London Stock Exchange, and the New York Stock Exchange is expected, and dealings are set to commence, on Monday, Dec. 8.
The move finalises the separation of a portfolio featuring global brands like Magnum, Ben & Jerry’s, and Wall’s, which had annual sales of €7.9 billion in 2023. Unilever has said the spin-off will allow it to focus on its simpler portfolio of home, beauty, and personal care brands while enabling the ice cream business to pursue its own growth strategy.
“The demerger is intended to maintain comparability, so far as practicable, between Unilever’s share price and per share metrics before and after the demerger,” the company stated.
TMICC published its prospectus for the Amsterdam and London listings on Wednesday, Dec. 3. Its U.S. registration statement became effective on Thursday, Dec. 4, clearing the path for its New York debut.
Share Consolidation to Follow
Separately, Unilever confirmed it will proceed with a share consolidation shortly after the demerger to reduce its total number of ordinary shares in issue, as approved by shareholders in October. This is designed to adjust for the removal of the ice cream business’s value from Unilever’s share price.
The share consolidation will become effective from 8:00 a.m. on Tuesday, Dec. 9, with the newly consolidated Unilever shares beginning trading in London and Amsterdam that same day. New Unilever American Depositary Shares (ADSs) will start trading in New York at 9:30 a.m. local time on Dec. 9.
Unilever’s ice cream division has faced specific challenges, including highly seasonal demand and a cost-heavy cold chain distribution network, which executives believe are better managed independently.
The detailed timetable indicates TMICC shares will begin trading in Amsterdam at 9:00 a.m. local time, in London at 8:00 a.m., and in New York at 9:30 a.m. on Dec. 8. Shareholders will receive their TMICC share entitlements and any fractional sale proceeds by Monday, Dec. 22.