The Magnum Ice Cream Company (Magnum HoldCo), The Magnum Ice Cream Company B.V., and entities within the Unilever group have entered into a share purchase agreement under which The Magnum Ice Cream Company will acquire all of the shares of Kwality Wall’s (India) Limited (KWIL) that will be issued to the Unilever group under the India demerger plan, according to a company statement issued on 25 June.

Magnum HoldCo will acquire 61.9% of the issued and paid-up capital of Kwality Walls, which is held by the Unilever group.

Unilever’s India subsidiary, Hindustan Unilever (HUL), announced in January of this year that it would separate its ice cream business into an independent corporation, KWIL. Following the demerger, the FMCG major’s stockholders got shares in the new ice cream firm at a 1:1 ratio.

The company’s board initially accepted the demerger in November 2024, following a recommendation by an independent committee formed in September 2024.

The committee highlighted that the ice cream industry, which includes popular brands such as Kwality Wall’s, Cornetto, and Magnum, has a distinct operating model that necessitates specialist cold chain infrastructure and independent distribution routes from the rest of HUL’s activities.

Furthermore, Magnum HoldCo plans to launch an open offer to KWIL’s public shareholders for additional shares in accordance with SEBI requirements, according to the release.

Last March, the Unilever company announced its decision to spin off its ice cream business into a separate entity.

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