Investors resist Unilever Dutch relocation plan

UNILEVER is facing further opposition to its move from London to Rotterdam as another shareholder signalled its intention to vote against the plan.

Royal London Asset Management has joined a chorus of investors in opposing the proposal, in which the owner of Ben & Jerry’s ice-cream will scrap its AngloDutch dual listing and relocate its headquarters to the Netherlands.

Mike Fox, head of sustainable investments at Royal London Asset Management, said: “Many UK Unilever shareholders voting for the upcoming resolution are effectively voting for forced divestment of their holding.

“Unilever might be able to convince European shareholders that the move makes sense for the company and for them as investors in the long term but it’s hard for a UK investor to see an incentive to vote in favour.”

The asset manager owns 0.72 per cent of Unilever, worth approximately £360million.

Royal London also warned that, should the motion succeed, it would be forced to sell its holding in Unilever across a number of funds, something not in the interest of its clients. A growing number of shareholders has come out against the move in recent weeks, setting up a showdown for October 25 and 26 when investors vote on the plans.

Investment managers voicing their disdain include Columbia Threadneedle, Legal & General, Aviva Investors, Lindsell Train, M&G Investments and Brewin Dolphin.

Unilever announced plans to “simplify” the business from two legal entities into one, incorporated in Rotterdam, in March.

It dealt a major blow to the Government and its efforts to uphold Britain’s status as a centre for business after Brexit.

But Unilever has insisted the move to Rotterdam has “nothing to do with Brexit”.

It also said at the time that its 7,300 workers in the UK and 3,100 in the Netherlands will be unaffected by the changes.

If the firm goes ahead with the restructure, Unilever’s shares are unlikely to continue trading in the FTSE 100 in the wake of the move.