Another top shareholder in Unilever has added its name to the list of those pushing against the consumer giants move to the Netherlands.
Asset management firm Schroders joined a growing list of investors who have vowed to reject Unilever’s plan.
Schroders joins Aviva Investors in this pledge, who have said that the potential move to Rotterdam over London “because there is no upside only downside.”
Aviva Investors are fearful of the move as they argue it could cause a rush for the exits to sell the stock, which would subsequently lead to major losses for the company.
Shroders global head of stewardship Jessica Ground said reiterated this point by saying that:
“Unilever is opting for a single listing in the Dutch market; we have previously expressed our concerns about the moves in the Netherlands towards protectionism, which undermines shareholder rights.
“In addition, our clients will be forced sellers of Unilever as a result of it exiting the FTSE UK Indices.”
Investors are concerned Unilever will be booted out the FTSE 100 if it moves its base to the Netherlands, meaning passive funds that track FTSE indices would be forced to sell.
Last week, Graeme Pitkethly, Unilever’s chief financial officer defended the move, saying: “It’s got great benefits for all shareholders” who will benefit from “a stronger and a simpler Unilever”.