Consumer goods giant Unilever has been forced to delay the demerger of its ice cream business as a result of the US government shut down.
Unilever has been in the process of spinning off The Magnum Ice Cream Company, which also owns Ben & Jerry’s and is valued at around £13billion, as the group narrows its focus on beauty and personal care.
The group had targeted 10 November as the date shares would begin on their trading in Amsterdam, following a snub of London, with a secondary listing in New York.
But Unilever told shareholders on Tuesday an initial public offering would take place later than initially hoped because of the ongoing US government shutdown.
It said the shutdown is preventing the US securities regulator from declaring effective the registration statement required for The Magnum Ice Cream Company to start listing and trading on the New York Stock Exchange
The Magnum Ice Cream Company is valued at around £13bn
However, it still thinks an IPO will take place this calendar year.
Unilever said: ‘The preparatory work for the Demerger is on track and progressing well, and Unilever remains committed to and confident of implementing the Demerger in 2025.
‘Further updates on the revised timetable will be provided as soon as practicable.’
Steve Clayton, head of equity funds at Hargreaves Lansdown, said: ‘With federal employees laid off until Congress agrees a new funding deal, there’s simply no-one available to approve the paperwork, putting the demerger on hold.
‘With neither the White House nor the opposing Democrats seemingly prepared to give ground on spending, Magnum’s stock-market debut is stalled for now.’
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
#government #shutdown #forces #Unilever #delay #ice #cream #spin
