Scene set for Stock Spirits’ AGM as investor backs major shareholder in calling for change
BACKING for the dissident investor in troubled Stock Spirits is growing ahead of next week's AGM at the London-listed, Central European spirits producer.
Stock Spirits' largest shareholder, Western Gate, is calling for the election of two new non-executive directors (Neds), and for a new review of the company's M&A strategy. Western Gate Investments is the investment vehicle of Portuguese businessman Luis Amaral which recently become the largest shareholder of Stock Spirits, at nearly 10 per cent.
The spirits firm has grappled a duty increase in Poland, the loss of market share and management turmoil.
Skagen, a Stock Spirits' institutional investor, said: “We support the need for an immediate review of the current strategy in order to turn around the company’s core business. We support Western Gate's proposal of adding two independent directors to the board as we believe that this is a first and important step in the right direction for the company.”
Advisory groups Pirc and ISS both recommend that members vote for the appointment of new Neds, but not for a new strategy.
A spokesman for Stock Spirits said: “The company is urging shareholders to vote against the two proposed Neds. The view of management is that the two Neds are not independent as they were recommended by Western Gate which is controlled by Luis Amaral. Mr Amaral is also the biggest shareholder in Eurocash, Stock's largest customer in Poland. The two proposed Neds would not add to the wealth of experience and skills on the Board as they do not know the Polish market and do not have experience of UK listed businesses.”