ACTIVIST INVESTMENTS FOR SUSTAINABLE GROWTH
CURRENT INVESTMENT
DIA
DIA is a leading network of over 3,300 convenience stores across Spain and Argentina. With a focus on proximity, high-quality products, and affordability, Grupo Dia serves more than 10 million customers through both physical stores and an online platform. Founded in Madrid in 1979, the company has a team of over 17,000 employees and a franchise network of 15,000 members. Listed on the Spanish stock exchange, Grupo Dia achieved a turnover of €6.759 billion in 2023.
How we did it?
Western Gate started investing in DIA in mid-2018 and currently holds >2% of the company. Western Gate believes in DIA’s business model and that the convenience and proximity format towards which DIA is moving is the best way forward and the future of retail. The Company has gone through some difficult times but Western Gate believes the turnaround is completed and it is time to extract value. See Valuing DIA Website
2018
Initial Investment in DIA
2019
1st Capital Increase
2021
2nd Capital Increase
13th December 2024
Press Release: Coalition of Minority Shareholders in DIA, led by Western Gate, write letter to board of directors requesting urgent changes at DIA
12th December 2024
Press Release: Western Gate supportive of Grupo DIA financing agreement and reverse stock split
22nd November 2024
Press Release: Coalition of over 40 minority shareholders meet in Madrid to call for urgent reforms at Grupo DIA
PREVIOUS INVESTMENT
STOCK SPIRITS
Stock Spirits was a Central and Eastern European branded spirits producer that Western Gate invested in back in 2015. The company aimed to become the leading spirits business in Central and Eastern Europe, boasting a portfolio of over 45 brands spanning vodka, vodka-based flavoured liqueurs, rum, brandy, bitters, and limoncello. Its primary markets were Poland, the Czech Republic, and Italy. Stock Spirits was traded on the London Stock Exchange.
How we did it?
Western Gate made a strategic investment in Stock Spirits, recognizing significant potential for value creation. Over the years, Western Gate played an active role in shaping Stock Spirits’ trajectory, including advocating for leadership changes and operational adjustments to enhance efficiency and focus on core markets.
During Western Gate’s tenure as an investor, Stock Spirits witnessed substantial growth, with its stock price more than doubling and market share expanding notably in Poland and the Czech Republic.
In December 2021, Western Gate successfully exited its investment in Stock Spirits by selling its stake to CVC, who had launched a tender offer for the company. This marked the conclusion of Western Gate’s involvement with Stock Spirits.
2015
Initial Investment in Stock Spirits
2016
Further Investment in Stock Spirits
2021
Exit from Stock Spirits
1st February 2021
AGM 2021 Press Release: Western Gate intends to vote against the Chairman and Senior Independent Director.
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