Hindustan Unilever (HUL) today said it will seek shareholders' approval to transfer certain assets, liabilities and properties of FMCG exports business division of the company to Unilever India Exports.
In a filing to the Bombay Stock Exchange (BSE), HUL said it has been directed by the Bombay High Court to hold a meeting of its shareholders on July 28, 2011 to consider the scheme of arrangement proposed to be made between HUL and Unilever India Exports.
The company's Board of Directors at its meeting held on May 9, 2011 had approved a proposal for demerger of FMCG exports business, including specific exports related manufacturing units of the company, into its wholly-owned subsidiary Unilever India Exports (UIEL), with effect from April 1, 2011.
"In order to fully exploit the opportunity in export market and to provide necessary focus, flexibility and speed to the business, the Board of Directors considered the above proposal and has, subject to the necessary approvals, decided to demerge FMCG exports business of the company into its wholly owned subsidiary," HUL had said in a filing to the BSE.
The company will continue to provide all necessary support to UIEL in order to grow the exports business, it had said.
HUL's scrip closed at Rs 333.20, down 0.85% from the previous close on the BSE.
