Magnum Ice Cream to acquire 61.9% of Kwality Wall

INDIA – Magnum Ice Cream, a brand under Unilever, has announced that it will acquire a 61.9% stake in Kwality Wall’s India after the ice cream business demerger. 

This comes as Hindustan Unilever Ltd (HUL) on January 22 this year announced that it would demerge its ice cream business into an independent entity, Kwality Wall’s (India) Ltd (KWIL). Upon completion of the demerger, HUL shareholders will receive one share of KWIL for each HUL share held.

As a result, the Unilever Group is expected to hold 61.9 per cent of the issued and paid-up share capital of KWIL, following the completion of the India demerger.

“The Magnum Ice Cream Company B.V. and entities within the Unilever Group have entered into a share purchase agreement (“SPA”) pursuant to which Magnum HoldCo has agreed to acquire all of the KWIL shares to be issued to the Unilever Group as a result of the India Demerger (i.e., 61.9% of the issued and paid-up share capital of KWIL),” Unilever stated.

Unilever stated that completion of the acquisition of these shares pursuant to the SPA remains subject to: Fulfilment of certain conditions in the SPA (including the successful demerger of KWIL from HUL and listing of KWIL shares) and receipt of requisite statutory and other approvals.

Additionally, Magnum HoldCo will make an open offer to the public shareholders of KWIL for additional shares of KWIL in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The Magnum Ice Cream Company demerger

In 2024, Unilever PLC (“Unilever” and, together with its group companies, the “Unilever Group”) announced its decision to separate the global ice cream business into a stand-alone entity.

The Magnum Ice Cream Company (TMICC) is progressing towards full separation from Unilever, with a planned listing in Q4 2025. TMICC will be incorporated and headquartered in the Netherlands, with shares listed in Amsterdam, London and New York.

The operational separation is expected to be completed by 1 July, including the setup of legal entities, a new operating model, and carve-out financials. From the fourth quarter, Unilever will report Ice Cream as a discontinued operation.

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE