Unilever to simplify capital structure through preference share buyback

The FTSE 100 consumer goods company said the shares represented approximately 97% of all the outstanding 6% and 7% cumulative preference shares, and would be acquired by means of a public offer which Unilever intended to launch so as to enable all holders of the 6% and 7% cumulative preference shares to access the same terms as those agreed with NN and ASR.

It said the offer would value all of the outstanding 6% and 7% cumulative preference shares at €450m.

“This represents an important step in simplifying the capital structure, which Unilever has been pursuing for many years,” the company’s board said in its statement.

“It will make Unilever easier to understand, and improve corporate governance by strengthening the link between economic interest and voting rights for our shareholders.”

The offer would be made at a price of €3,078.00 per 6% preference share, €307.80 per 6% sub-preference share, €3,262.00 per 7% preference share, and €326.20 per 7% depository receipt of sub-preference share.

Unilever said the offer price was cum dividend, except for the accrued dividend that Unilever N.V. was set to pay in September as previously announced.

“NN and ASR have each irrevocably committed to accept the offer and tender the preference shares held by them under the offer against payment of the offer price and subject to the terms of the offer.

“In accordance with applicable offer rules, any information shared with NN and ASR about the offer shall be included in the offer memorandum.”

Unilever said the preference shares were issued between 1927 and 1964, and had a high nominal value.

Under Dutch law, ordinary and preference shares are entitled to voting rights in proportion to their nominal value at any general meeting of shareholders of Unilever N.V.