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Third shareholder rallies against Stock Spirits

Another shareholder has joined an internal revolt against Central and Eastern European producer Stock Spirits, supporting the nomination of two new board directors.

Az Valor has pledged support for a new perspective at Stock Spirits’ board

Az Valor, which owns a 2.16% stake in Stock Spirits and advises funds that hold a further 1.11%, said it intends to vote in favour of proposals put forward by the group’s main shareholder Western Gate.

In April this year, Western Gate launched a campaign against Stock Spirits and its CEO Chris Heath, leading to Heath’s early retirement weeks later.

Western Gate, headed by Eurocash CEO Luis Amaral, cited a number of concerns, including declining market share in Poland, an “under-performing” share price, and “spiralling” corporate costs.

The firm therefore called for Heath’s removal and a “fresh perspective” at board level, nominating Heineken Group’s Alberto Da Ponte and PepsiCo’s Randy Pankevicz as board members.

In addition to Az Valor, Templeton Emerging Markets, which owns a 4.2% stake in Stock Spirits, said it supports “in principal” the proposals outlined by Western Gate, which will be voted on by shareholders during an AGM on 23 May.

Stock Spirits has hit back at the proposals, claiming they have been designed to “destabilise the business” and give “undue influence” to Amaral’s Eurocash – Stock Spirits’ largest customer.

However, Az Valor said in a statement: “Luis Amaral, by virtue of his close to 10% stake in Stock Spirits, has risked significant ‘skin in the game’ and we believe his interests are aligned alongside ours in the long-term.

“Furthermore, his assessment of the weaknesses and problems afflicting the company has enough merit to be worth a profound consideration by the board and the management team of Stock Spirits.

“Finally, we do not see how the nomination of Alberto Da Ponte and Randy Pankevicz, with their Heineken and PepsiCo backgrounds, could pose a problem to the long-term future of the company.”

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