Unilever plans tender for 6%, 7% cumulative preference shares in Q3

By Susanna Moon

Chicago, Aug. 9 – Unilever NV plans to tender for its 6% cumulative preference shares and 7% cumulative preference shares in the third quarter of 2017.

Unilever has agreed to terms for buying back 97% of the preferreds from NN Investment Partners BV and ASR Nederland NV, according to a 6-K filing with the Securities and Exchange Commission.

The public offer will allow all holders access to the same terms, which value all of the outstanding preference shares at €450 million.

The public offer price will be as follows:

• €3,078.00 per 6% preference share;

• €307.80 per 6% sub-preference share;

• €3,262.00 per 7% preference share; and

• €326.20 per 7% (depository receipt of sub-) preference share.

The offer price is cumulative dividend except for the accrued dividend that Unilever will pay in September, the filing noted.

After the offer, Unilever said it plans to begin statutory proceedings to acquire any remaining preference shares and to terminate the listings of the shares on Euronext Amsterdam.

The offer will be financed with available cash and existing facilities.

“This represents an important step in simplifying the capital structure, which Unilever has been pursuing for many years,” the filing said. “It will make Unilever easier to understand, and improve corporate governance by strengthening the link between economic interest and voting rights for our shareholders.”

The preference shares were issued between 1927 and 1964.

Unilever is a consumer products company based in Rotterdam, the Netherlands.

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