Hindustan Unilever Limited Board approves demerger of Ice Cream business into an independent listed entity

HUL shareholders to receive shares in new ice cream business entity, subject to approvals, maximizing value for all.

FMCG major Hindustan Unilever Ltd (HUL) on Monday (November 25, 2024) said its board has approved the demerger of the ice cream business, which owns brands such as Kwality Wall's, Cornetto and Magnum, into an independent listed entity.

The existing shareholders of the FMCG major will receive shares in the new entity in proportion to their shareholding in HUL, according to a company statement.

However, the demerger process will be subject to the necessary approvals and procedures to be followed in accordance with the applicable laws, it added.

Earlier on October 23, HUL said it has gone for a valuation of the ice cream business, which contributes around 3 per cent of the topline, to have a fair idea.

It was trying to maximise value for all shareholders, based on the recommendations of the Independent Committee, the board will determine the mode of separation by the end of this year.

"The Board considered different modes of separation of the Ice Cream business and after due consideration, with a view to maximising value for all the shareholders, the Board has accorded in-principle approval to demerge the business," said HUL.

It has also authorised HUL’s management to undertake preparatory steps required for the demerger of the Ice Cream business.