Unilever cancels plan to move to single Netherlands HQ

Unilever directors have decided to withdraw their proposal to move out of the UK to a single Netherlands headquarters after growing opposition from shareholders.

Cancelling the planned shareholder votes for the Dutch and UK in Rotterdam and London later this month, the consumer goods conglomerate said it recognised that the proposal "has not received support from a significant group of shareholders and therefore consider it appropriate to withdraw".

Unilever had wanted to end its Anglo-Dutch dual-governance structure and move from two classes of shares to one, with a single legal headquarters domiciled in the Netherlands, which would have resulted in its shares dropping out of the FTSE 100 index.

Institutional investors Royal London and Columbia Threadneedle had joined the growing ranks of organisations saying they would vote against the change to simplified corporate structure, which already included Legal & General, M&G Investments, Aviva Investors, Lindsell Train and Brewin Dolphin. This was alongside anger from some retail investors who were unable to vote if they held shares in nominee accounts.

Earlier this week shareholder adviser group PIRC recommended investors oppose the move and IVIS, part of the Investment Association, was reported to have told Unilever it was preparing to issue a rare 'red top' rating, signalling significant concern.

And so on Friday morning, chairman Marijn Dekkers said: "The board continues to believe that simplifying our dual-headed structure would, over time, provide opportunities to further accelerate value creation and serve the best long-term interests of Unilever.

"The board will now consider its next steps and will continue to engage with our shareholders."

Unilever will still proceed with the plan to cancel the NV preference shares, he said, and will look to re-engage with shareholders regarding future steps toward simplification of the group's structure.