Unilever shareholders raise opposition to HQ relocation plans

A major shareholder in Unilever has pledged to vote against the consumer goods giant's plan to relocate headquarters from Britain to the Netherlands.

The maker of PG Tips, Marmite and Dove soap is planning on relocating to the Netherlands to simplify corporate structure since it currently holds a headquarters in both London and Rotterdam. After the move it would only have a single HQ.

With Unilever needing the support of three quarters of UK shareholders, Aviva asset management, the ninth-largest holder of Unilever’s UK-listed stock, was reluctant to back management's decision as the move would force it and other UK shareholders to sell their stock without an “upside”.

According to the Financial Times, more than one in five of the company’s shareholders oppose the move.

Unilever argues that a single headquarters in the Netherlands will make it more competitive by making it easier to sell off and buy assets, as well as provide better governance.

David Cumming, chief investment officer for equities at Aviva Investors, told the BBC: "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.

"I don't see logically why any UK shareholder would support their decision to go Dutch, because there is no upside only downside."