Unilever has decided to relocate its headquarters to the Netherlands. $UL is a company co-owned by Magaine Unie, a Dutch Company, and Lever Brothers, a British Company. One of the reasons for relocating is to simplify its corporate structure. Amid this deliberation, it is required that 75% of the company’s shareholders agree to this. Unilever is presently listed under FTSE 100 in London with a £124billion in market cap. Any relocation to the Netherlands, then $UL will cease to be listed under the FSTE 100. One of the major shareholders said it is not in support of the relocation; which will encourage long term investors to sell off their shares.
Meanwhile, price action has crossed over to the lower region of the bands. The Ichimoku shows the future movement of price trend to be downward. Price movement using the RSI also shows a continuous downtrend. I hope relocating the headquarter to the Netherlands will not lead to bigger problem for $UL as a company. Due to these indicators, sellers from the FTSE 100 might continue to sell off their $UL shares.
Source: Unilever Relocation Plan Rejected (BBC)