Ahead of Distribuidora Internacional de Alimentación, S.A.’s (DIA) Annual Shareholder General Meeting scheduled for June 28, 2024, Western Gate Private Investments Limited (Western Gate), a longstanding supporter and shareholder, has once again voiced concerns regarding governance and transparency to the company’s Board of Directors. Western Gate emphasizes the need to safeguard the interests of minority shareholders. Despite legal obligations requiring a response prior to the General Meeting, Western Gate’s letter, submitted on June 13, 2024, remains unanswered as of June 24, 2024.
This communication follows ongoing dialogue initiated by Western Gate over recent months, underscoring critical issues that have yet to be adequately addressed by the Board. The lack of responsiveness suggests a disregard for fostering transparency and equitable value creation for all shareholders.
Western Gate acknowledges DIA’s potential and the efforts made to strengthen its core business of convenience stores while divesting non-strategic assets, leading to improved market performance in 2023. Nevertheless, the market continues to undervalue DIA, a trend exacerbated by what Western Gate views as dilutive transactions benefiting majority shareholders at the expense of minorities.
Over the past three years, Western Gate has urged the Board to enhance engagement with market analysts to better communicate DIA’s turnaround and valuation prospects. Regrettably, these efforts have not materialized, contributing to sustained undervaluation. In its latest letter, Western Gate seeks clarification on the Board’s rejection of collaboration offers aimed at enhancing minority shareholder representation and raising DIA’s profile.
In compliance with art. 13.4 of the Regulations of the General Meeting of Shareholders, Western Gate has formally requested the Board to publish its letter promptly on the corporate website, along with detailed responses to its queries and requests for information.
Francisco Jose Valente Hipolito dos Santos, Director at Western Gate, expressed disappointment over DIA’s persistent undervaluation despite financial improvements. He stressed the need for the Board to respond honestly and professionally in accordance with legal obligations, urging directors to prioritize the collective interests of all shareholders.
Regarding voting intentions at the upcoming General Meeting, Western Gate plans to vote against several resolutions, including the approval of the Board’s 2023 performance, and will abstain from voting on director reappointments and procedural matters aimed at reducing the notice period for Special Shareholders’ Meetings.
This stance reflects Western Gate’s commitment to advocating for greater transparency, governance, and equitable treatment of all shareholders within DIA.
