Stock concedes to appoint new board members

Ahead of its AGM next week, Central and Eastern European producer Stock Spirits has agreed to appoint two additional independent non-executive directors to mitigate shareholder concerns.

Stock Spirits has conceded to appoint two new independent non-executive directors

The offer has been made in response to proposals put forward by the firm’s main shareholder, Western Gate Private Investments, which has led an internal revolt against Stock Spirits over recent months.

Following calls from Western Gate and a second Stock Spirits shareholder, Templeton Emerging Markets, the group’s CEO Chris Heath announced his early retirement last month.

Just last week, a third shareholder – Az Valor – said it intends to vote in favour of Western Gate’s proposals.

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

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

However, Stock Spirits 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.

David Maloney, chairman of Stock Spirits, has therefore said that after listening to shareholders he is prepared to appoint two new directors as long as they are selected by the board’s nomination committee.

“A process to appoint two suitably qualified independent non-executive directors would be the appropriate manner in which to add fresh perspectives to the board,” said Stock Spirits.

However, Western Gate said it is “disappointed” with Stock Spirits’ continuing criticisms against it and has urged shareholders to vote for the appointment of da Ponte and Pankevicz.

“I fail to understand the board’s continued resistance to the appointment of two highly experienced, independent candidates, especially when they have now taken the time to listen to their shareholders and agreed that additional experience is required,” said Luis Amaral.

“The promise of future performance is one that the company has failed to live up to historically and the company is running out of time given the continued deterioration of its performance in Poland.”

Amaral added that Maloney has asked him to withdraw Western Gate’s resolutions ahead of Stock Spirits’ AGM on Monday 23 May.