Activist investor Nelson Peltz’s hedge fund Trian Partners has sold off a chunk of its holding in Unilever for close to £181m, according to filings published on the London Stock Exchange today.
The New York fund offloaded three blocks of 3.8 million shares over the past few days, the documents showed.
Analysts at Jefferies estimated it amounted to roughly 10% of Trian’s holding, lowering its stake from about 1.5% of Unilever shares to 1.3%.
Trian started building a position in Unilever in early 2022 as then CEO Alan Jope faced increased pressure from investors for long-running underperformance, which intensified following the abandoned £50bn tilt at the consumer health division of GlaxoSmithKline.
Peltz took a seat on the Unilever board in July that year, with his fund having accumulated a 1.5% stake in the Persil and Hellmann’s owner worth about $1.6bn. It meant Trian was one of the group’s five biggest shareholders.
The founding partner of Trian is well known as an activist in the fmcg industry, taking seats on the boards of Procter & Gamble, Mondelez and Heinz in the past.
Shares in the group soared in reaction to Peltz joining the board, in anticipation of a shake-up at the business.
The stock has rocketed by almost 30% since Trian’s position in Unilever was first reported by The Financial Times in January 2022.
Peltz has also endorsed the performance of new CEO Hein Schumacher, who took the reins in 2023, with the new boss announcing a new action plan in November 2023 as part of a turnaround effort and putting the ice cream division up for sale earlier this year.
Jefferies equity analyst David Hayes said the move to lower its stake was “not an unusual development” for Trian when it has a board seat. He cited a sell-off of Heinz shares, as the funds stake dropped from 6% in the fourth quarter of 2006 to 1.8% by the end of 2009, and eventually to just 0.5% by early 2011.
“Throughout this time Peltz retained his board seat at Heinz, coming off the board eventually in 2013,” Hayes said.
“There may be specific context/technicalities that prompted this trimmed exposure to Unilever at Trian. The company is unable to comment on the share dealings of shareholders, as you would expect.
“While some may see this as less commitment to the investment, after a year-to-date move of +25% [in the share price], the Heinz history could indicate the Trian presence could still be prolonged.”
Shares in Unilever soared in July as the turnaround gathered pace and the group beat first-half expectations in the City.
Unilever is up 0.2% to 4,737p so far today.
A Trian spokesman told The Grocer: “The reduction by Trian of its holdings in Unilever was done for portfolio management purposes. Trian continues to be one of Unilever’s largest active shareholders with ownership of approximately 32.6 million shares.
“Trian founding partner and CEO, Nelson Peltz, who serves on the Unilever board, looks forward to continuing to work with the company’s board and management team to create long-term shareholder value.”
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