Campari, Yuanfudao, Casino, LVMH: Catch up with the latest pandemic-related insights below
Italy’s Aperol maker is shaking and stirring a planned power grab. Just a month ago, the Italian cocktails group proposed to move its registered office to the Netherlands, chiefly to allow the controlling Garavoglia family to enjoy super-voting rights amid a shopping spree. With shares trading near 9 euros at the time – above withdrawal rights offered to potentially disgruntled shareholders – the governance change was supposed to be painless and come at little cost.
With Davide Campari-Milano shares now trading some 20% below an exit right set at 8.376 euros a share, the risk of investors rushing to grab the cash is real. No wonder its board amended the deal, saying it will cancel the offer if it must buy out more than 3 million shares, a bill of some 25 million euros in total. What looked like a clever move by the Garavoglias is beginning to look more like a Negroni-induced hangover.
It makes sense, though, as online learning is front and centre amid school closures forcing students to work from home. Downloads of online education apps have surged since coronavirus hit. But it’s not necessarily an easy ride: Alibaba’s DingTalk, a communication app which offers livestream and homework-grading features, has faced sharp criticism from students who have flunked it, leaving sub-par reviews. It may be easier to get investors to hit the books than students.
However, boss Jean-Charles Naouri was in a tricky spot already. Before shoppers began filling trolleys of toilet paper and pasta sauce, investors, including bankrupt parent Rallye, were no longer receiving dividends. Its debt pile was also nearing 5 billion euros. Analysts at JPMorgan reckon Friday’s sale will produce 650 million euros of net cash. Cleaning up its balance sheet while panic-driven sales boost profitability seems like a safe gamble.
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