Unilever’s ice cream stock split: What it means for your portfolio

If you own Unilever shares you do not need to take any action ahead of the demerger and consolidation, however you should be aware that the process will affect how your holdings appear in your Saxo account.

Essentially, the value of your Unilever shares will fall after the demerger completes - but the value of your Unilever plus your TMICC shares will be (allowing for rounding differences and normal market movements) the same as your old Unilever holding was.

Demerger: Unilever is set to demerge its ice cream business on Saturday, 6th December, creating a new entity, The Magnum Ice Cream Company (TMICC). As part of the process qualifying Unilever shareholders will get one share of TMICC for every 5 shares of Unilever they own. Trading in TMICC is expected to commence on December 8^th.

The TMICC Group will be a standalone corporate group separate from Unilever – approximately 80% will be owned by Unilever shareholders, with around 20% held by Unilever.

You don’t need to do anything to receive your TMICC shares – these will show up in your portfolio once shares start trading on Monday, December 8^th.

However, please note that any holding of Unilever shares/ADSs which is not exactly divisible by five will result in the number of entitlements to TMICC shares to be received being rounded down to the nearest whole number. Individual fractional entitlements to TMICC shares will be aggregated and sold in the open market, with the net proceeds paid to the shareholder (ie credited to your Saxo account as cash). Unilever says sales will be done as soon as practicable and obtain the best price reasonably obtainable.

Consolidation: The demerger will affect Unilever’s market cap, so the company is proposing a consolidation, also known as a reverse stock split, to reduce the total number of Unilever shares in issue, in order to maintain comparability as much as possible between Unilever's per share metrics pre and post split. The share consolidation is expected to be effective from December 9^th.

This process aims to restore the post-demerger share price to about the same as pre-demerger level, without changing the overall value of the company.

Example: Let's says it's an 8-for-9 reverse split (it could be this ratio but we don't know yet). If you own 900 Unilever shares before the demerger you would, after the corporate actions, own 800 ‘new’ Unilever shares and 180 shares of TMICC. The combined value of this position should be unaltered.

Again, please be aware that fractional entitlements to new Unilever shares may arise as a result of the consolidation. According to the company, any holding of Unilever shares which is not exactly divisible by the consolidation ratio will result in the number of entitlements to new Unilever shares being rounded down to the nearest whole number.

Individual fractional entitlements will be aggregated and sold in the open market. The net proceeds of the sale, after the deduction of any expenses and/or commission (including any related VAT), will be paid in due proportion to the shareholders. Again, you do not need to take any action as the proceeds from any relevant holdings will be paid as cash to your Saxo account.

So the value of your 'new' Unilever holding will be lower after the split than your 'old' Unilever holding - but the value of your shares in 'new' Unilever plus that of your new Magnum shares (allowing for rounding differences and market movements on the day) will be the same as your 'old' Unilever holding was.

Important dates

10pm (GMT) Friday December 5th is Demerger Record Time. Only qualifying shareholders as at the Demerger Record Time are entitled to receive TMICC Shares on completion of the Demerger.

6pm on Saturday 6 December 2025 is when the Demerger becomes effective

8am Monday 8 December - TMICC shares start trading on Euronext Amsterdam & London Stock Exchange (shares start trading in New York at 2:30pm)

8am on Tuesday 9 December 2025 is when the Share Consolidation becomes effective

FAQs

Do I need to take any action to receive my TMICC Shares?

No, you are not required to take any action — Qualifying shareholders and ADS holders will receive their TMICC shares automatically once the Demerger takes effect.

What do I receive as a Unilever Shareholder?

Qualifying shareholders/ ADS holders that are on the Unilever register of members as at the Demerger Record Time will receive one TMICC Share for every five Unilever Shares that they hold.

Will this affect my Unilever Shares or Unilever ADSs?

The number of Unilever shares or ADSs you own will not be directly affected by the Demerger, but they will be affected by the Share Consolidation.

Where will TMICC Shares be traded?

TMICC is seeking admission to trading its shares on Euronext Amsterdam, the London Stock Exchange and the New York Stock Exchange. This will ensure that qualifying shareholders and ADS holders will be able to hold and trade their TMICC Shares across the same three markets on which Unilever shares and ADSs are currently traded. Although, TMICC shares will be listed directly as shares on the New York Stock Exchange, rather than as ADSs.

What indices will TMICC be included in following listing?

Index inclusion will be determined by the index providers’ specific rules. It is expected that the indices in which TMICC will be included will be announced shortly before the Admission Date. It is not anticipated that TMICC Shares will be eligible for inclusion in any of the FTSE UK series indices (such as the FTSE 100, of which Unilever is a constituent member).

What is TMICC?

The Magnum Ice Cream Company accounts for approximately 21 per cent of the global retail ice cream market in 2024, making it the largest ice cream company in the world by retail sales.

It is number one by retail sales in nine of its 10 largest markets (the United States, Turkey, Germany, the United Kingdom, Mexico, Italy, France, the Philippines and Indonesia) and number two in China.

Will TMICC earnings be recognised by Unilever?

TMICC will be classed as a financial asset, not an associate, which means Unilever will not recognise any profits, only dividends. Unilever plans to gradually reduce its 19.9% stake over five years, while dividends are not expected to come from TMICC until the first half of 2027.

Unilever’s net income is expected to fall about 10% following the demerger, which would suggest a 5.7% decline in 2026 earnings per share versus its pre-demerger growth forecast.

Contact us if you require any further information.