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Activist threat: Cider maker Magners C&C also owns Scottish beer Tennent’s and Irish cider Bulmers
An activist investor has called for a restructuring at Magners cider maker C&C, which could lead to its sale.
In a letter to the board, hedge fund Engine Capital urged it to launch a strategic review and find a potential buyer, considering private equity as an option.
He said the drinks group, which also owns Tennent’s Scottish ale and Bulmers Irish cider, has been a “perpetual underperformer”.
The share value has halved in the last five years.
Engine Capital, which owns just under 5 percent of the manufacturer, criticized “succession errors, strategic errors, execution errors and the inability to return to its all-time high earnings profile” for stifling its valuation potential.
In response, C&C said it “welcomes feedback from all shareholders and has a clear focus on creating value for shareholders.”
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