Unilever to start tender for 6%, 7% cumulative preferreds on Thursday

By Susanna Moon

Chicago, Oct. 11 – Unilever NV will run a tender for its 6% cumulative preference shares and 7% cumulative preference shares from 3 a.m. ET on Thursday until 11:40 a.m. ET on Oct. 25.

The nominal value and offer price will be as follows:

• For the 6% cumulative preference sub-shares, the nominal value is €42.86 and the offer price is €307.80;

• For the 7% cumulative preference (whole) shares, the nominal value is €428.57 and the offer price is €3,262; and

• For the 7% cumulative preference sub-shares shares, the nominal value is €42.86 and the offer price is €326.20.

The offer price will be paid in cash without interest and withholding of taxes and is cum dividend, according to a company announcement.

The offer price is a 264% premium to the closing price per 6% cumulative preference sub-share and a premium of 288% to the closing price per 7% cumulative preference sub-share on Aug. 8, which is the day before the offer was announced on Aug. 9.

The company said on Aug. 9 that it planned to tender for the preference shares and that it had agreed to terms for buying back 97% of the preferreds from NN Investment Partners BV and ASR Nederland NV.

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 was to 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 exchange agent and the administrative tender agent is ABN Amro Bank NV (corporate.broking@nl.abnamro.com or +31 20 344 2000). The administrative tender agent is SGG Financial Services BV (registerunilever@sgggroup.com or +31 20 5222 555).

After the offer, Unilever previously 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, according to the previous notice.

“This represents an important step in simplifying the capital structure, which Unilever has been pursuing for many years,” the notice 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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