Hindustan Unilever to return Rs21.9 billion to shareholders due to ‘lack of investment options’

Hindustan Unilever to return Rs21.9 billion to shareholders due to ‘lack of investment options’

Hindustan Unilever is to return Rs21.9 billion to shareholders, according to a report published by Bloomberg Business, due to a ‘lack of investment options’. Although Hindustan Unilever CFO P B Balaji claimed the move signalled “a sign of confidence that we can run the business comfortably”.

Sales of personal care products such as Dove soaps and Fair & Lovely skin cream, rose just 3.3 percent in the final quarter of 2015, the smallest increment in a decade, while net income for the same period fell 22 percent.

The Indian arm of the Anglo-Dutch FMCG company will seek court approval for the transfer before deciding in what format to return the cash – be it a dividend or other means. The transaction is due to complete in the final half of 2016.

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