LONDON (Alliance News) - Drinks distributor Stock Spirits Group PLC on Tuesday said it has proposed the appointment of two non-executive directors to its board ahead of its annual general meeting next week when shareholders will vote on proposals tabled by shareholder Western Gate Private Investments Ltd.
Stock Spirits said it has held talks with shareholders in the weeks since Western Gate tabled its plans to shake up the board and the company's strategy and said it was "encouraged" by the discussions and support shown by shareholders.
Having held these discussions, Stock Spirits said some shareholders wish for the board to be strengthened and, to that end, the company has decided to undertake the process of identifying two additional independent non-executive directors to the board.
Stock Spirits said it believes the plans are aligned with what Western Gate and Luis Amaral, who controls the Western Gate vehicle, have called for.
However, Stock Spirits said it hoped this would satisfy Western Gate and result in the investor withdrawing its proposals for the meeting, due to take place May 23, but this has not been the case. Stock Spirits said it was "disappointed" Western Gate and Amaral have chosen not to withdraw their resolutions.
As a result, Stock Spirits said it remains opposed to Western Gate's resolution and advised shareholders to vote against the plans. The company said its board does not believe it to be in the interest of shareholders for any directors nominated by Western Gate, which owns 9.7% of Stock Spirits, to be appointed to the board.
The pair are locked in a battle over the future direction of the business following a tough 2015 when Stock Spirits saw its market share in its key Polish market slump.
Western Gate's efforts have already resulted in Chris Heath stepping down as Stock Spirits' CEO and the investor has proposed thee appointment of Alberto Da Ponte and Randy Pankevicz as non-executive directors.
Stock Spirits shares were up 0.2% to 162.25 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.