Campari’s Top Investor to Buy Up to $111 Million in Shares, Citing Market Value
The investor said its intention to buy more shares shows its long-term commitment to Campari and its full support for the company’s growth strategies
Davide Campari-Milano’s CPR -7.48%decrease; red down pointing triangle controlling shareholder Lagfin said it plans to buy shares in the Aperol maker valued at up to 100 million euros ($111.2 million), saying the company’s market price doesn’t reflect its true value.
The move followed news that Matteo Fantacchiotti, chief executive of the Italian liquor maker, resigned from his role for personal reasons, just months after taking the helm.
Lagfin said late Wednesday that the purchases will be carried out in coming days subject to market conditions. Lagfin owned 51.4% of Campari’s ordinary shares and held 82.5% of its voting rights at the end of August, according to Campari’s website.
The investor said its intention to buy more shares shows its long-term commitment to Campari and its full support for the company’s growth strategies.
Campari’s shares have fallen in recent days to levels last seen in 2020, during the Covid-19 pandemic. The stock closed 7.5% lower on Wednesday on news of Fantacchiotti’s departure and is down nearly 32% since the start of the year.
Like many of its peers, Campari benefited from positive trends during the pandemic, when consumers purchased beverages to drink at home, but the industry faced more normal consumption patterns lately and the company has cautioned on soft markets, distribution challenges and increased price competition in its core markets.