The move comes just over a month after Engine Capital, which owns a stake worth just under 5% in C&C, called on the group’s board to conduct a strategic review “aimed at a sale”.
In this latest attempt to force change, Engine Capital said that during four years as investor it has “witnessed succession missteps, strategic mistakes, execution blunders, accounting adjustments due to deficient internal controls, goodwill impairment and the mismanagement of an enterprise resource planning implementation”.
As result, the investor has written to fellow shareholders urging them to elect Ryan Dubin and Alan Hibben to the board, increasing the total number of representatives from eight to 10.
‘We want C&C to maximise value for owners’
Explaining the rationale, Engine Capital managing partner Arnaud Ajdler wrote in the letter that shareholders in C&C would be “well served by electing our two highly qualified candidates”.
“Our directors are committed to entering the boardroom with an open mind, a sense of urgency and a focus on creating long-term shareholder value,” continued Ajdler.
“As a large shareholder, our incentives are aligned with yours. Our goal is to enable the company to finally maximize value for its owners. With the election of our two highly qualified directors, I believe we can do just that.”
Headquartered in Dublin, Ireland, C&C possesses a portfolio of alcoholic drinks brands including Tennent’s, Bulmers and Magners.
In response, the group released a statement which read: "C&C has always engaged openly with its shareholders, and will continue to do so. This includes regular dialogue with Engine Capital since it invested in the company, and in particular since its open letter of 24 June 2024 and its notification of intention to propose the appointment of additional directors to the board.
"The board of C&C is reviewing the contents of Engine's recent letter and will provide a response in due course."
In other news, Italian firm Newlat has completed the £700m acquisition of Princes from Mitsubishi Corporation.
