Caiaimage / Paul Bradbury
Constellation Brands (New York Stock Exchange: STZIt rose in late trading on Tuesday after the beverage company revealed that it had entered into a cooperation agreement with Elliott Investment Management and some of its subsidiaries regarding the composition of the board of directors. and related matters.
As part of this arrangement, Constellation Brands (STZ) has agreed to appoint two new independent directors to serve as members of the Board, with an initial term expiring at the 2024 Annual Meeting of Shareholders. STZ has also agreed to limit the size of the Board of Directors during the 2024 Annual Meeting to 13 members, with an exception that gives the Board the ability to increase its size to 14 in order to appoint an additional director who meets certain independence requirements and is also the current or former CEO of a publicly traded company. The Cooperation Agreement also includes certain voting obligations, standstill, and mutual non-discrimination provisions that will survive the period beginning July 18 and expiring early in the close of the 2024 Annual Meeting and on July 31, 2024.
In addition to the cooperation agreement, Constellation Brands (STZ) and Elliott have entered into an information sharing agreement regarding the sharing of certain confidential information by the Company with Elliott in anticipation of its planned Investor Day later this year.
Shares of Constellation Brands (STZ) rose 3.77% in after-market trading on Tuesday to a 52-week high of $263.98.