Stock Spirits shareholders vote down dividend payment
Western Gate’s proposed resolution for the payment of a special dividend failed to gain the backing of shareholders at the Stock Spirits annual general meeting (AGM) yesterday (6 February).
Stock Spirits held its AGM on 6 FebruaryIn December last year, Western Gate called on Stock Spirits to pay a special dividend, claiming it was “unacceptable” that “shareholders are not receiving any value” from their backing.
In the lead up to the AGM, Western Gate wrote a letter to fellow shareholders of Stock Spirits to call for the payment of a special dividend.
However, Stock Spirits argued that a special dividend payment now would be a “significant constraint” on the company’s mergers and acquisitions (M&A) strategy.
Of the 13.97% of the votes in favour of resolution 20, put forward by Western Gate, 12.14% came from Western Gate.
Western Gate is the second-largest Stock Spirits Shareholder, with a 10% stake in the company.
In a statement, Stock Spirits said: “The group remains committed to ongoing dialogue with our shareholders and, as part of the development of the new remuneration policy, we will reflect on feedback received from shareholders.
“A further update on these matters will be included in the group’s annual report.
“With regard to Western Gate’s requisitioned ordinary resolution 20, it is noted that 13.97% of votes cast were ‘for’ the resolution, of which 12.14% were represented by Western Gate and 1.83% from other shareholders.”
The Spirits Business has contacted Western Gate for a comment and is awaiting a response.
Yesterday, Stock Spirits reported sales were up during the first quarter of its 2019/20 financial year, boosted by Poland and the Czech Republic.
