Unilever restructuring includes selling off spreads and 5 bn euros share buyback program | Progresiv
Following a strategic review prompted by the Kraft Heinz takeover approach earlier this year, Unilever is selling off its spreads business including well known butter brands like Flora and Stork. Unilever CEO Paul Polman says the review has also highlighted opportunities for “accelerated development” of Unilever’s portfolio and that the future of the Spreads business “now lies outside the Group.” 
Kraft Heinz Co. withdrew its 143 billion dollars bid for Unilever two days after the approach became public in February. Defending itself against the approach, Unilever announced it was to carry out a root and branch review which immediately started speculation about what asset sales it would carry out.
“It has confirmed that our model of long-term shareholder value creation has been successful and remains as valid as ever. The actions we are now going to take are fully supported by the Board,” says chairman Marijn Dekkers.
Unilever also announced that it’s launching a 5 billion euros share buyback program and raising its shareholder dividend 12% to reflect “increased confidence in the outlook for profit growth and cash generation.”
“Our recent review concluded once more that our strategy for long-term value creation through growth and compounding returns on investment is the right one for Unilever and for our shareholders. It also highlighted the opportunity to go faster and further,” adds Polman. (www.foodingredientsfirst.com)
