Columbia Threadneedle Investments has become the latest Unilever plc (LON:ULVR) shareholder to disapprove of the consumer goods giant’s plan to relocate its headquarters to the Netherlands.
Iain Richards, head of responsible investment at Columbia Threadneedle, said the asset manager would vote against the proposal at Unilever’s extraordinary general meeting (EGM) on October 26.
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Richard said he believes the group’s restructuring plan is “detrimental” to UK shareholders.
Columbia Threadneedle, Unilever’s seventh-largest shareholder with an 1.18% stake, joins a long list of major investors who have said they would vote down Unilever’s plan.
Schroders, Aviva and Legal & General Investment Management have also said they would reject the move.
Unilever, the owner of the Marmite and Dove brands, wants to move the business as part of a plan to simplify its corporate structure. The plan will see the company switch from two classes of shares to one – a proposal that has been attacked by institutional shareholders.
The worry for investors is that Unilever will be ousted from the FTSE 100 if it moves its base to the Netherlands. That would mean passive funds that track FTSE indices would be forced to sell.
Unilever’s chief financial officer Graeme Pitkethly argued last week that the relocation would have “great benefits for all shareholders” as it would lead to “a stronger and a simpler” business.