By Razak Musah Baba
LONDON--Unilever PLC (ULVR.LN) said Monday it is buying the
rights to shares left in family trusts by the company's founder
William Hesketh Lever, which can be converted into 71 million
Unilever PLC ordinary shares in 2038, for 715 million pounds ($1.20
billion).
The amount payable is equivalent to GBP10.09 per ordinary share,
a discount of 63% to the closing share price on Friday.
Jean-Marc Huet, Unilever CFO, said the deal is another step in
the simplification of Unilever's capital structure, eliminating a
significant dilution of shareholders' interests.
Mr. Lever, the first Viscount Leverhulme, was the founder of the
company which became Unilever PLC, and which together with Unilever
NV forms the combined Unilever Group.
When he died in 1925, Mr. Lever left a large number of PLC
shares in various trusts. Consequently, some of these trusts owned
shares in Margarine Union (1930) Ltd., a subsidiary of Unilever
PLC, which could be converted in 2038 into 70.9 million ordinary
shares at zero cost.
Unilever is known for brands including Knorr, Persil, Dove,
Lipton and Lynx.
Unilever PLC shares in London at 1154 GMT traded up 37 pence, or
1.4%, at GBP27.41, valuing the company at GBP35.17 billion.
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
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