Unilever faces shareholder backlash over HQ move

Unilever investors have said they would vote against the firm’s decision to move headquarters to the Netherlands.

The company behind Dove and Marmite announced in March that it aims to simplify its corporate structure and only have one HQ based in Rotterdam.

Aviva investors have feared that because the FTSE 100 firm will no longer be listed in London, shareholders will sell the stock resulting in losses.

“Aside from the fact it is disappointing to see a world-class company like Unilever leave the UK, it also means longstanding UK shareholders may be forced to sell their stock,” said David Cumming, chief investment officer for equities at Aviva Investors.

“I don’t see logically why any UK shareholder would support their decision to go Dutch, because there is no upside only downside,” he added.

The group needs 75 percent from shareholders for the move to go ahead. A Unilever spokesperson said the firm was confident in achieving approval.

“We have engaged extensively with our shareholders and we believe the vast majority are fully supportive of the board’s proposal,” said the spokesperson.

The group have also made clear that the move is irrelevant to Brexit and have said they are committed to the UK.

A government spokesperson said: “Unilever has shown its long-term commitment to the UK by choosing to locate its two fastest-growing global business divisions in this country.”

“As the company itself has made clear, its decision to transfer a small number of jobs to a corporate HQ in the Netherlands is part of a long-term restructuring of the company and is not connected to the UK’s departure from the EU.”

Unilever employs 7,300 people in the UK and 3,100 in the Netherlands. The group have said that no jobs will be lost by the move.

Shares in Unilever (LON: ULVR) are trading at 4,254.00 (0903GMT).

 

Previous articleCrusader Resources announces half year report
Next articleTime Magazine sold to Benioff for $190m
Avatar photo
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.