Unilever yesterday (6 April) announced a €5 billion programme of shareholder rewards. The decision comes on the heels of a failed takeover bid by Kraft Heinz and a perceived need within the consumer goods giant to rethink its business structure.
The shareholder rewards programme aims to prove that Unilever can generate returns as an independent company. “We need to accelerate our plans to unlock further value faster, and this was brought home to us by the events of February,” chief executive Paul Polman said.
“There is no doubt that, however […] opportunistic [the Kraft bid] was, it did raise expectations,” added Polman.
Unilever also plans on a €5 billion share buyback in the coming months, as well as raising its dividend by 12% this year.
The company also intends to sell or spin off its spreads business, which has been underperforming recently.
© 2017 - Checkout Magazine by Donncha Mac Cóil