Magnum to acquire 61.9% of Kwality Wall’s as HUL demerges ice cream business

New Delhi: Global FMCG major Unilever on Wednesday said Magnum HoldCo will acquire 61.9% of Kwality Wall's (India).

Magnum HoldCo is the holding firm within the new firm formed by the demerger of the ice cream business of Unilever.

On March 19, 2024, Unilever PLC announced that it would separate its global ice cream business into a stand-alone business.

The separation of the global ice cream business is expected to be completed in the fourth quarter of 2025, and the new company is known as 'The Magnum Ice Cream Company', Unilever said in a statement.

In India, the company's subsidiary Hindustan Unilever (HUL) on January 22 this year announced that it would demerge its ice cream business into an independent entity—Kwality Wall's (India) (KWIL). On completion of the demerger, HUL shareholders get one share of KWIL for each HUL share.

As a result, the Unilever Group is expected to hold 61.9% of the issued and paid-up share capital of KWIL, following the completion of the India demerger, the company said.

"The Magnum Ice Cream Company HoldCo 1 Netherlands BV (Magnum HoldCo), The Magnum Ice Cream Company BV and entities within the Unilever Group have today entered into a share purchase agreement (SPA) pursuant to which Magnum HoldCo has agreed to acquire all of the KWIL shares to be issued to the Unilever Group as a result of the India demerger, i.e., 61.9% of the issued and paid-up share capital of KWIL," the statement said.

The completion of the acquisition of these shares is subject to the fulfilment of certain conditions in the SPA, including the successful demerger of KWIL from HUL, listing of KWIL shares and receipt of requisite statutory and other approvals, it added.

Also, it will be subject to Magnum HoldCo making an open offer to the public shareholders of KWIL for additional shares of KWIL in accordance with the Securities and Exchange Board of India takeover regulations, the statement said.