Caiaimage/Paul Bradbury
Constellation Brands (NYSE:STZ) rose in late trading on Tuesday after the beverage company disclosed that it entered into a cooperation agreement with Elliott Investment Management and some of its affiliates regarding the composition of the board of directors and related matters.
As part of the arrangement, Constellation Brands (STZ) 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 stockholders. STZ also agreed to limit the size of the board through the 2024 annual meeting to 13 members, subject to an exception providing the board with the ability to increase its size to 14 members in order to appoint an additional director who meets certain independence requirements and is also a current or former chief executive officer of a publicly-traded company. The cooperation agreement also includes certain voting commitments, standstill, and mutual non-disparagement provisions that remain in place during the period beginning on July 18 and ending on the earlier of the conclusion of the 2024 annual meeting and July 31, 2024.
In addition to the cooperation agreement, Constellation Brands (STZ) and Elliott entered into an information sharing agreement pertaining to the sharing of certain confidential information by the company with Elliott in anticipation of the investor day planned for later this year.
Shares of Constellation Brands (STZ) moved up 3.77% in postmarket trading on Tuesday to a 52-week high of $263.98.