Drinks giant AB InBev urges shareholders to support Conviviality
AB InBev is urging shareholders of troubled drinks distributor Conviviality to support the business as it seeks out support from the City.
Conviviality is under pressure after it discovered errors in its accounts and an unexpected tax bill of £30m. Management has now embarked upon an equity fundraise.
Read more: Troubled Conviviality to raise funds through £125m placing
Customers and suppliers of Conviviality have spoken out in support of the business, because they fear supply chains would be disrupted if Conviviality falters.
A spokesperson for AB InBev said: “As a supplier to Conviviality for many years, we have always had a strong and reliable business relationship with the company and look forward to working with them in the future.
“We understand Conviviality is undertaking an extensive City roadshow as part of an equity fundraising and we trust shareholders will be supportive of the business as they work to resolve the situation.”
Tim Martin, chairman of JD Wetherspoon, has also spoken out, saying that he hopes Conviviality can pull through. The two companies have been trading for more than 20 years.