Unilever has been forced to delay the spin-off of its ice cream division due to the ongoing US government shutdown now entering its fourth week.
The company initially planned to list the business in mid-November as part of a turnaround plan to pivot away from food and focus more on beauty and personal care.
The delay is necessary as the US Securities & Exchange Commission cannot register the new business, known as The Magnum Ice Cream Company, for trading on the New York Stock Exchange.
Unilever said it remained “committed to and confident of” implementing the demerger by the end of the year and would give further updates on the revised timetable “as soon as practicable”.
The new company’s main listing will be in Amsterdam, with secondary listings in New York and London.
Shareholders were told of the potential delay at the start of October, Unilever said.
The Magnum Ice Cream Company has been operating as a standalone business since July, making up around 13% of Unilever’s total sales and 10% of profits.
In Unilever’s latest half-year results, its ice cream sales – including Magnum, Ben & Jerry’s and Cornetto – rose 5.9%, significantly ahead of expectations due to new product launches and long spells of hot weather.
Last month, Ben & Jerry’s co-founder Jerry Greenfield quit the ice cream brand he started 50 years ago, saying it had been “silenced” by Unilever.
Under its spin-off plans, Unilever will retain a stake of less than 20%, which it will sell down over five years to cover the costs of separation.
Unilever is undergoing a major turnaround since new CEO Fernando Fernandez took over in March, refocusing on higher-growth divisions and selling underperforming food brands.
In July, Fernandez said the priorities were “more beauty and wellbeing and personal care; disproportionate investment in the US and India; and a sharper focus on premium segments and digital commerce”/
Unilever is due to publish quarterly results on Thursday.
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