On 22 January 2025, Hindustan Unilever informed that it would demerge its ice cream business into an independent entity, Kwality Wall’s (India)
Global fast-moving consumer goods (FMCG) major Unilever has informed that Magnum HoldCo has agreed to acquire all of the Kwality Wall’s (India) or KWIL shares to be issued to the Unilever Group as a result of the India demerger. This results in the acquisition of 61.9 per cent of the issued and paid-up share capital of KWIL.
On 19 March 2024, Unilever PLC informed its decision to separate its global ice cream business into a stand-alone business. The separation of the global ice cream business is expected to be completed in the fourth quarter of 2025, and the new company is known as The Magnum Ice Cream Company, the company stated in a regulatory filing. The Magnum Ice Cream Company will be separated by way of a demerger, through listing of the business in Amsterdam, London and New York
In India, the Unilever Group carries out its ice cream business through its subsidiary, Hindustan Unilever or HUL. The Unilever Group holds 61.9 per cent of the issued and paid-up share capital of HUL.
On 22 January 2025, HUL informed that it would demerge its ice cream business into an independent entity (KWIL). On completion of the India semerger, all equity shareholders of HUL will be issued shares of KWIL in the ratio of one KWIL share for each HUL share held at the record date, and these KWIL shares will be subsequently listed on both the stock exchanges.
As a result, the Unilever Group is expected to hold 61.9 per cent of the issued and paid-up share capital of KWIL following completion of the India demerger.
“Magnum HoldCo, The Magnum Ice Cream Company BV and entities within the Unilever Group have today entered into 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 as a result of the India demerger,” the exchange filing read.
The company noted that the completion of the acquisition of these shares pursuant to the SPA remains subject to Magnum HoldCo making an open offer to the public shareholders of KWIL for additional shares of KWIL in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
