Unilever Investors Set to Receive Magnum Ice Cream Company Shares

Unilever is moving ahead with the demerger of The Magnum Ice Cream Company (TMICC), separating its global ice cream operations into an independent, publicly listed business. 

Why Unilever Is Spinning Off Ice Cream

The board believes the ice cream division operates with characteristics that differ significantly from the rest of Unilever, including seasonality, capital intensity, and cold-chain logistics. As a result, they view the separation as an opportunity for both companies to focus more effectively on their respective strategies. 

Once the demerger takes effect, qualifying Unilever shareholders will automatically receive one TMICC share for every five Unilever shares held.

Unilever’s 5-for-1 Share Consolidation

Alongside the demerger, Unilever will implement a share consolidation to maintain comparability in its share price and key per-share metrics after the separation. The consolidation ratio is 5-for-1, meaning every five existing Unilever shares will be consolidated into one new share. 

A share consolidation does not change the overall value of a shareholder’s investment but reduces the number of shares in issue to align the share price with the new, smaller company structure. This adjustment will apply to all Unilever listings across the global markets in which the shares currently trade.

Where Will The Magnum Ice Cream Company (TMICC) Shares  Trade

TMICC shares will be listed on Euronext Amsterdam, the London Stock Exchange, and the New York Stock Exchange, mirroring the markets where Unilever shares and ADSs are currently available. 

This ensures that existing investors across different regions can continue to hold and trade the new company’s shares without needing to take any action.

Dividend Policy After Demerger

Regarding dividends, Unilever has stated that the demerger and upcoming share consolidation are not expected to affect its dividend policy. The company remains committed to paying an attractive and sustainable dividend, with a payout ratio of around 60% of underlying earnings. 

The demerger will also not impact the expected payment date of the Q3 2025 dividend. Investors can expect Unilever to provide further updates when it announces its full-year results in February 2026.

Key Dates

Investors who own shares on or before the last date to trade will qualify to receive TMICC shares, and investors can participate with any amount. 

Key dates for the demerger include:

• The last date to trade to participate in the spin-off and qualify for TMICC shares is 05 December 2025.
• Shares of TMICC are expected to be distributed and listed on 08 December 2025.
• The share consolidation is expected to come into effect on 09 December 2025.

Sources – EasyEquities.

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