Campari Shares Rebound After Top Investor Pledges to Raise Stake — Update

By Adria Calatayud

Davide Campari-Milano's stock jumped after majority shareholder Lagfin outlined plans to buy shares valued at up to 100 million euros ($111.2 million), saying the company's market price doesn't reflect its true value.

Shares in Campari traded 5.6% higher at 7.37 euros in early Thursday morning trade in Europe, rebounding from losses in recent days, but remained down about 28% since the start of the year.

The move by Lagfin followed news that Matteo Fantacchiotti, Campari's chief executive, resigned from his role for personal reasons, just months after taking the helm at the Italian liquor maker.

Lagfin said late Wednesday that the purchases would be carried out in the 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.

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.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

September 19, 2024 03:51 ET (07:51 GMT)

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