A coalition of minority shareholders at Spanish retail group DIA convened in Madrid to discuss strategies that the retailer needs to implement to achieve its true potential.
The meeting of minority shareholders is part of the coalition's efforts to call for urgent changes at DIA.
The coalition, united by concerns over DIA’s significant undervaluation relative to its peers and the board’s lack of transparency, seeks to promote better corporate governance at the Spanish supermarket chain.
Luís Amaral of Western Gate commented, "This meeting was a significant step forward for the coalition. We are long-term supporters of DIA and want to see this Spanish champion restored to its former glory.
"The time has come for DIA to make necessary changes to its board so that it acts responsibly and listens to all shareholders, not just the majority shareholder, LetterOne."
The Meeting
The coalition discussed how the DIA's board failed to effectively communicate the company’s operational and strategic progress over the last few years and expressed frustration at being consistently ignored.
The strategies discussed at the meeting include building on the positive operational momentum currently in place and establishing a clear investor relations strategy to improve share price performance.
It also reiterated that management and the board should be properly incentivised, so that their total compensation is aligned with share price performance.
The coalition also urged for a more independent board with relevant, recent sector experience to represent the interests of all shareholders.
Amaral added, “The coalition's message is clear: it’s time for change. We, the minority shareholders at DIA, are tired of being ignored and need the board to prioritise our interests. Together, we are confident we can drive the transformation needed to unlock DIA's full potential.”
