The Magnum Ice Cream Company will acquire 61.9 per cent of Kwality Wall’s (India) Ltd from Unilever Group.
Fast-Moving Consumer Goods maker Hindustan Unilever Ltd (HUL) board had earlier accorded in-principle approval to demerge the ice-cream business into an independent listed entity. The company had proposed that the shareholders of HUL would receive shares in the new entity in proportion to their shareholding in HUL.
The demerger would give Unilever Group 61.9 per cent stake in Kwality Walls and this stake will be acquired by Magnum Ice Cream Company. An open offer will also be made to the public shareholders of Kwality Walls, following the demerger and its listing.
“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,” the company informed the stock exchanges.
Accelerating GAP
Last year, the parent company Unilever announced that it will Acceaccelerate its Growth Action Plan (GAP) through the separation of the ice-cream business. Following separation, Unilever will operate four business groups across beauty and well-being, personal care, home care and nutrition.
In March 2024, Unilever had announced its decision to separate its global ice-cream business into a standalone entity. The separation of the global ice-cream business is expected to be completed in the fourth quarter of 2025.