Finance
Unilever to consolidate shares on 8-for-9 ratio after Magnum demerger
Published by Global Banking and Finance Review
Posted on December 8, 2025
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 8, 2025
Dec 8 (Reuters) - Unilever announced on Monday it will consolidate its shares at a ratio of 8 new shares for 9 existing shares, after it completed the demerger of its ice cream business Magnum.
The company completed the demerger of the ice cream unit - whose cold supply chain demands more complex operations than its other food brands - on December 6, making Magnum the world's biggest standalone ice cream business.
The post-consolidation Unilever shares will have a nominal value of 0.035 pounds ($0.0466) each, and are expected to begin trading on the London Stock Exchange on December 9.
Magnum began trading on the Amsterdam stock exchange on Monday at 12.96 euros per share, implying a market capitalisation of $9.24 billion.
($1 = 0.7506 pounds)
(Reporting by Unnamalai L in Bengaluru; Editing by Krishna Chandra Eluri)
Share consolidation is a process where a company reduces the number of its outstanding shares, increasing the share price proportionally. This often occurs after a significant corporate event, such as a merger or demerger.
A demerger is a corporate restructuring process where a company splits off a part of its business into a new independent entity. This can enhance focus and operational efficiency for both the parent and the new company.
Nominal value, or par value, is the face value of a share as stated in the company's charter. It is used to determine the minimum price at which shares can be issued and does not necessarily reflect market value.
The London Stock Exchange is one of the largest stock exchanges in the world, where shares of publicly traded companies are bought and sold. It plays a crucial role in the global financial market.
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