The Magnum Ice Cream Company (Magnum HoldCo), The Magnum Ice Cream Company B.V. and entities within the Unilever group have entered into a share purchase agreement through which The Magnum Ice Cream Company will acquire all the shares of Kwality Wall’s (India) Limited (KWIL) set to be issued to the Unilever group under the India demerger plan, a company statement said on June 25.
Magnum HoldCo will buy 61.9 percent of the issued and paid-up capital of Kwality Wall’s owned by the Unilever group.
In January this year, Unilever’s India subsidiary Hindustan Unilever (HUL) had announced that it will demerge its ice cream business into an independent entity KWIL. Following the demerger, the shareholders of the FMCG major received shares of the new ice cream entity in the ratio of 1:1.
The company’s board had initially approved the demerger in November 2024, following a recommendation by an independent committee set up in September 2024.
The committee noted that the ice cream business, which includes popular brands such as Kwality Wall's, Cornetto, and Magnum, has a unique operating model and needs specialised cold chain infrastructure and distinct distribution channels, separate from rest of HUL's operations.
Moreover, Magnum HoldCo will make an open offer to the public shareholders of KWIL for additional shares of KWIL according to SEBI’s regulations, the statement said.
Last year in March, the Unilever group had announced its decision to spinoff its ice cream business into a standalone business.
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