 "HUL scoops out its ice cream biz, to turn it into a listed entity")
The board of directors of Hindustan Unilever (HUL) on Wednesday approved the demerger of its ice cream business Kwality Wall’s (India) Limited (KWIL) into an independent listed entity. The demerger is subject to statutory and regulatory approvals.
Pursuant to the scheme, one equity share of KWIL will be allotted for every one equity share held in HUL. Upon demerger and listing of KWIL, the entire shareholding of KWIL will be held directly by shareholders of HUL.
“KWIL will be a leading listed ice cream company in India, with an experienced management equipped with greater focus and flexibility to deploy strategies suited to its distinctive business model and market dynamics, thus realising its full potential. Further, the business will continue to be equipped with the portfolio, brand and innovation expertise from the largest global ice cream business enabling it to keep winning in the marketplace,” HUL said in a release. ALSO READ: HUL to acquire 90.5% stake in Minimalist at enterprise value of Rs 2,995 cr
The demerger will also facilitate a smoother transition for business as well as its people, the company added.
Rohit Jawa, CEO and managing director, HUL said, “Our ice cream category is a high-growth business with iconic brands such as ‘Kwality Wall’s’, ‘Cornetto’ and ‘Magnum’, operating in an attractive segment. The demerger will unlock fair value for HUL shareholders and give them the flexibility to stay invested in ice cream’s growth journey.” ALSO READ: HUL Q3FY25 results: Net profit rises 19% to Rs 2,984 cr, revenue up 2%
The scheme of arrangement is as per provisions of the Companies Act, 2013 and other applicable laws.