On Thursday, November 21, over forty minority shareholders of Distribuidora Internacional de Alimentación, S.A. (DIA) gathered in Madrid to push for critical changes at the Spanish supermarket chain. United by concerns over DIA’s significant undervaluation compared to its peers and the Board’s lack of transparency, the Coalition is advocating for stronger corporate governance to unlock DIA’s full potential.
“The Coalition’s message is clear: it is time for change. We, DIA’s minority shareholders, are tired of being ignored and need the Board to put our interests first. Together, we are confident that we can drive the transformation needed to realize DIA’s full potential,” said a representative from the Coalition.
The meeting addressed key issues, with shareholders expressing frustration over the Board’s failure to communicate effectively regarding DIA’s operational and strategic progress. This lack of transparency has, they argue, hindered the company’s ability to achieve its true value and diminished investor confidence. The Coalition feels that the Board has not taken sufficient action to improve shareholder value or market perception.
Several strategies were discussed during the meeting to help DIA realize its potential. The Coalition advocates for capitalizing on the company’s current positive momentum, alongside developing a clearer investor relations strategy to boost share price performance. Additionally, the Coalition stressed that management and Board members should be incentivized based on the company’s share price performance, aligning their compensation with shareholder interests.
Another major point of discussion was the need for a more independent Board. The Coalition believes that the current Board, with its heavy reliance on the majority shareholder, LetterOne, does not represent the diverse interests of all shareholders. They called for a more balanced Board, with members who have relevant industry experience and can better represent the broader shareholder base.
The Coalition also emphasized the importance of improving market liquidity to attract investor interest, which would help strengthen DIA’s position in the market. These proposals aim to enhance DIA’s financial stability, increase shareholder value, and improve its overall market perception.
Luis Amaral of Western Gate, a prominent member of the Coalition, commented: “This meeting is an important step forward for the Coalition. We have been long-standing supporters of DIA and want to see this leading Spanish player regain its former glory. The time has come for DIA to make the necessary changes to its Board to act responsibly and listen to all shareholders, not just the majority shareholder, LetterOne.”
Since its formation in September 2024, the Coalition has gained substantial momentum in amplifying the voice of minority shareholders who have endured significant financial losses. Despite this, the Coalition claims that the DIA Board, led by representatives of the majority shareholder, LetterOne, remains largely unresponsive to their concerns.
“The Coalition’s message is clear: it is time for change,” said Amaral. “We, DIA’s minority shareholders, are tired of being ignored. We need the Board to put our interests first. Together, we are confident that we can drive the transformation needed to realize DIA’s full potential.”
About Western Gate
Western Gate Private Investments Limited is an investment arm of Luis Amaral’s Family Office, focusing on private and listed companies, particularly in the retail and consumer goods sectors.
About the Coalition
The Coalition, led by Western Gate, consists of independent, non-voting shareholders concerned with DIA’s declining share price and the company’s undervaluation compared to its industry peers. The group urges the Board to act in the interests of all stakeholders, not just the majority shareholder, and to take action on improving engagement with the market. They also advocate for the appointment of an independent Board member with direct experience relevant to DIA’s business model to represent the interests of minority shareholders.
The original-language text of this announcement is the official and authoritative version. This translation is intended as an aid only and should be cross-referenced with the original-language text, which is the only version intended to have legal validity.
