#HUL

The board of Hindustan Unilever has granted an in-principle approval to the demerger of its ice cream business into a separate entity, which will eventually be listed independently, the company informed stock exchanges on November 25. "The decision to demerge is subject to approval of the Board and the shareholders to the scheme of demerger to be placed before the board early next year. The Board considered different modes of separation of the ice cream business and after due consideration, with a view to maximise value for all the shareholders, the board has accorded in-principle approval to demerge the business," the company said. Shareholders will receive shares in the new entity in proportion to their shareholding in HUL, the statement added. "A separate listed entity will unlock fair value for HUL shareholders and give them the flexibility to stay invested in ice cream’s growth journey," Hindustan Unilever said in the statement. The HUL demerger is subject to approval of the board and the shareholders, and the scheme will be placed before the board early next year. The board said it had considered different modes of separation of the ice cream business, and after due consideration, an in-principle nod was given to demerge the business, with a view to maximise value for all shareholders.