Denmark’s Magnum Ice Cream Company has announced that it will buy a majority stake in Kwality Walls from the Unilever Group.
The fast-moving consumer goods company Hindustan Unilever Ltd board had earlier accorded in-principle approval to demerge Kwality Wall’s from the company and list it as an independent entity. Nonetheless, the corporation further proposed that the shareholders of Hindustan Unilever Ltd (HUL) shall be allocated shares of the new entity proportionate to their respective holdings in HUL. Subsequent to the demerger, Unilever would hold a 61.9% ownership interest in the demerged entity, which would then be acquired by the Magnum Ice Cream Company.
The company told the stock exchanges, “The Magnum Ice Cream Company HoldCo 1 Netherlands B.V. (“Magnum HoldCo”) and The Magnum Ice Cream Company B.V. have today announced the execution of a share purchase agreement (“SPA”) pursuant to which Magnum HoldCo has agreed to acquire all of the KWIL shares to be issued to the Unilever Group Shareholders pursuant to the Demerger, comprising 61.9 per cent of the issued and paid-up share capital of KWIL. Completion of the acquisition of these shares pursuant to the SPA.”
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All of this is a part of the Growth Action Plan or GAP, according to which Unilever will separate its ice cream business. After the successful separation of ice creams, Unilever will operate four business groups across beauty and well-being, personal care, Home Care and Nutrition. The separation of the ice cream company is now expected to be over by fourth quarter of 2025.
