Unilever Plc is evaluating options, including a New York listing, for its ice cream business, which is the biggest market for its brands such as Ben & Jerry's and Breyers, Bloomberg News reported, citing people familiar with the matter.
Last March, the London-listed company said it would spin off its ice cream unit, home to popular brands such as Magnum, with the process expected to be complete by the end of 2025.
The group, whose other brands include Dove soap, Marmite and Hellmann's condiments, has been undergoing a shakeup, including a cost-savings programme trimming 7,500 jobs globally.
Amsterdam and London are also among the venues being considered, the Bloomberg News report added.
Spinning off the unit will also help Unilever avoid controversies over political stances taken by Ben & Jerry's.
Unilever declined to comment.
'Hard To Please Everyone': Barclays
Barclays said in a note that it will be 'hard to please everyone with New York, London and Amsterdam all in the frame'.
'We think a UK/US listing would be the best balance which would minimise flow-back risk and maximise Ice Cream's valuation.'
Barclays believes that listing only in the US might eventually result into a higher valuation but the flow-back risk would likely be more significant as some UK and European shareholders might be forced sellers.
It added that the UK is Unilever's primary listing and an estimated 70% of its shareholders are US/UK domiciled.
'There would be inevitable pushback from the Dutch government given there have been some assurances from Unilever management around the listing domicile.'
'Unilever's Ice Cream HQ is currently moving from Rotterdam to Amsterdam and no doubt Dutch politicians will be lobbying just as hard as UK politicians.'
News by Reuters, additional reporting by ESM.
