Activist threat: Magners Cider maker C&C also owns Scottish beer Tennent’s and Irish cider Bulmers
An activist investor has demanded a shake-up at Magners Cider maker C&C that could see it sold.
In a letter to the board, hedge fund Engine Capital urged it to launch a strategic review and find a potential buyer, with private equity seen as an option.
It said the drinks group – which also owns Scottish beer Tennent’s and Irish cider Bulmers – has been a ‘perennial underperformer’.
Shares have halved in value in the last five years.
Engine Capital, which owns just under 5 per cent of the manufacturer, took a swipe at ‘succession missteps, strategic mistakes, execution blunders, and an inability to return to its higher historical 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 shareholder value’.
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