C&C Group shareholder to withdraw nominations for board reshuffle

C&C Group shareholder Engine Capital has agreed to withdraw its proposed nominations for two “highly qualified” director candidates following a commitment to “work constructively together”.

 

It comes after weeks of in-fighting at the drinks manufacturer, which has been accused of “succession missteps, strategic mistakes, execution blunders and an inability to return to its higher historical earnings profile” by Engine Capital.

 

In June, the US private investor, which owns just under 5% of C&C’s shares, took its concerns about the drinks business public, publishing a scathing open letter branding the company as a “perennial underperformer” and encouraging it to conduct a strategic review in preparation for a sale.

 

Later that month, the drinks supplier posted a £96m loss following accounting errors discovered in its previous results, which prompted then-chief executive Patrick McMahon to stand down from his role.

 

Last week, Engine Capital followed this up with a further open letter aiming to persuade C&C, which manufactures drinks including Tennent’s lager and Magners and Bulmers cider, to accept its nominations for two “highly qualified” director candidates.

 

These included investor and investment banker, Ryan Dublin, and Alan Hibben, a former investment banker and private equity executive.

 

However, as of this morning, the C&C Board and Engine Capital have jointly decided to implement a Cooperation Agreement and collaborate “in the best interests of the company, all its shareholders and wider stakeholders”. 

 

The company has agreed to start the process of appointing one new non-executive director with capital markets expertise to the Board from a shortlist of nominees approved by Engine Capital.

 

Engine Capital will withdraw its two initial nominees and confirmed it will vote “in support of all resolutions proposed” at the upcoming AGM, which will be held on 15 August.

 

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