Unilever PLC (LON:ULVR) has abandoned plans to scrap its dual listing and relocate to the Netherlands following opposition from several institutional investors.
The FTSE 100-consumer goods giant said in a statement that the proposal to relocate to the Netherlands and list solely on the Amsterdam stock exchange had “not received support from a significant group of shareholders” after it outlined the plans in September.
READ: Aviva asset management arm says it will vote against move by Unilever to scrap FTSE 100 listing
The move follows a period of vocal opposition from a number of institutional investors, including Columbia Threadneedle, Schroders PLC (LON:SDR), Aviva PLC (LON:AV.), and Legal & General Group PLC (LON:LGEN), Lindsell Train, Brewin Dolphin Holdings PLC (LON:BRW), and M&G Investments.
The seven institutions own around 10% of Unilever’s shares and had previously complained that the move would be detrimental to UK shareholders, with Aviva saying it saw “no justification” for the move.
Another key issue was that Unilever's plans could see it booted from the FTSE 100 index, with repercussions for index funds which would be forced to sell their shares in the company.
Marijn Dekkers, Unilever’s chairman, said that the firm would still proceed with a plan to cancel its preference shares in the Netherlands to strengthen corporate governance.
Robert Waldschmidt, head of consumer equity research at Liberum, said that the company had "clearly mishandled" the process and misread the response from its UK shareholders, although the decision not to move forward with the plan did not "materially affect the business" hence the lack of large movements in the shares.
He added that while the prospect of Unilever trying again to consolidate into a single entity, potentially going the opposite direction and basing itself in London, was "likely but not imminent".
In early trading Friday, Unilever shares were flat at around 4,077p.
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