Magnum scoops up 61.9% stake in Kwality Wall's post HUL demerger

In a major shake-up within the fast-moving consumer goods (FMCG) sector, Magnum Ice Cream Company is set to acquire a 61.9% stake in Kwality Wall's (India) Ltd (KWIL) from the Unilever Group, as per media reports.

The move follows the planned demerger of Hindustan Unilever Ltd's (HUL) ice cream division, setting the stage for the formation of an independent, publicly listed entity.

Also Read: HUL approves demerger of ice cream business into an independent listed entity

Earlier this year, HUL's board gave the green light to spin off its ice cream business, enabling its shareholders to receive proportionate equity stakes in KWIL.

The demerger is part of a broader global overhaul by parent company Unilever, which in March 2024 announced a strategic separation of its ice cream portfolio into a standalone entity, with a target completion date of Q4 2025.

The acquisition will be carried out through a share purchase agreement between Magnum HoldCo Netherlands B.V. and The Magnum Ice Cream Company B.V., covering shares allotted to Unilever shareholders once the demerger is finalized.

Following listing, Magnum HoldCo will also initiate an open offer for KWIL's public shareholders, in accordance with SEBI regulations.

The transition committee noted that HUL's ice cream segment, which includes flagship brands like Kwality Wall's, Cornetto, and Magnum, operates under a distinct model requiring dedicated cold chain infrastructure and specialized distribution - a clear departure from HUL's mainstream FMCG operations.

The reshuffle aligns with Unilever’s Growth Action Plan (GAP), a strategic blueprint aimed at streamlining global operations and sharpening focus on core categories.

As part of this vision, the ice cream business will evolve independently, unlocking greater agility and innovation within the frozen desserts space.

Also Read: HUL steps up digital advertising, media spends to drive growth for key brands