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Magnum to scoop up 61.9% stake in Kwality Wall’s as HUL spins off ice cream biz
Magnum Ice Cream Company will acquire a 61.9% stake in Kwality Wall’s India Ltd following the demerger of HUL’s ice cream division. The spin-off aligns with Unilever’s global Growth Action Plan, recognising the segment’s need for a separate cold chain and distribution model.
In a strategic reshuffle within the FMCG sector, Magnum Ice Cream Company will acquire a 61.9% stake in Kwality Wall’s (India) Ltd (KWIL) from the Unilever Group, following the planned demerger of the ice cream business from Hindustan Unilever Ltd (HUL).
This move follows HUL’s earlier board approval to spin off its ice cream segment into an independent listed entity, allowing shareholders to receive proportionate stakes in KWIL.
The acquisition will be executed through a share purchase agreement between Magnum HoldCo Netherlands B.V. and The Magnum Ice Cream Company B.V., covering the shares allotted to Unilever shareholders post-demerger. Additionally, Magnum HoldCo will launch an open offer for public shareholders of KWIL, in line with SEBI regulations, once the entity is listed on the stock exchange.
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The committee overseeing the transition noted that the ice cream segment—featuring well-known brands like Kwality Wall’s, Cornetto, and Magnum—operates under a distinct business model, requiring dedicated cold chain infrastructure and specialised distribution channels, which differ significantly from the rest of HUL’s operations.
This restructuring is part of the broader Growth Action Plan (GAP) outlined by parent company Unilever, aimed at sharpening focus on core business units. In March 2024, Unilever announced plans to separate its global ice cream operations into a standalone company, with the process expected to conclude by Q4 2025.
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