LONDON--(BUSINESS WIRE)--Members of the Coalition (“Coalition”), comprised of over forty minority shareholders in Distribuidora Internacional de Alimentación, S.A. ("DIA" or the "Company"), convened in Madrid on Thursday 21 November to gather momentum in the fight for urgent changes at DIA. The Coalition, united by concerns over DIA’s significant undervaluation relative to its peers and the Board’s lack of transparency, is determined to promote better corporate governance at the Spanish supermarket chain.
During the meeting, the Coalition discussed how the Board has failed to effectively communicate the Company’s operational and strategic progress over the last few years, hindering DIA’s true potential from being recognised. The Coalition also expressed frustration at being consistently ignored by the Board, which has done little to boost market confidence or shareholder value.
The Coalition outlined several strategies that are required for DIA to realise its true value. These include building on the positive operational momentum currently in place and establishing a clear investor relations strategy to improve share price performance. The Coalition reiterated that management and the Board should be properly incentivised, so that their total compensation is aligned with share price performance. The Coalition also stressed the need for a more independent Board with relevant, recent sector experience to represent the interests of all shareholders, not just the majority shareholder, LetterOne. Additionally, the Coalition urged improvements in market liquidity to increase investor interest and strengthen DIA’s position. These initiatives aim to fortify DIA's financial standing, boost shareholder value, and augment its market perception.
The Coalition remains committed to enhancing transparency and fostering a positive future for DIA. With growing support from both retail and institutional investors, the Coalition is optimistic that its united efforts will compel the Board to take decisive action.
Luís Amaral, Western Gate, commented: "This meeting was a significant step forward for the Coalition. We are long-term supporters of DIA and want to see this Spanish champion restored to its former glory. The time has come for DIA to make necessary changes to its Board so that it acts responsibly and listens to all shareholders, not just the majority shareholder, LetterOne.”
“Since forming in September 2024, our Coalition has gained significant momentum, amplifying the collective voice of minority shareholders who have endured substantial financial losses. Despite this, DIA’s Board, led by a representative of the largest shareholder, LetterOne, remains unresponsive to our concerns.”
“The Coalition's message is clear: it’s time for change. We, the minority shareholders at DIA, are tired of being ignored and need the Board to prioritise our interests. Together, we are confident we can drive the transformation needed to unlock DIA's full potential.”
Notes to editors:
About Western Gate
Western Gate Private Investments Limited is an investment branch belonging to the Family Office of Luis Amaral and invests in private and listed companies principally in the retail and consumer goods sector.
About the Coalition
The Coalition, led by Western Gate, is a group of independent shareholders, without any commitments on how to vote, who are seriously concerned about DIA’s languishing share price and a lack of action from DIA’s Board to address the fact that the Company is woefully undervalued vs. its peers. The Coalition is calling for the Board to act in the interests of all stakeholders and not just the majority shareholder by taking steps to better engage with the market and appoint an independent Board member with expertise directly relevant to DIA’s business model, to represent minority shareholders.
