Constellation Brands (NYSE:STZ) shares moved higher in pre-market trading on Wednesday after it announced appointments to its board of directors and a new partnership with one of its largest investors Elliot Investment Management.
The leading alcohol producer and marketer, whose brands include Corona and Modelo Especial, announced on Tuesday that Mondelēz International CFO Luca Zaramella and AutoZone CFO William T. Giles had been appointed to its board of directors, effective July 18, 2023.
The company noted that these appointments come as part of a comprehensive board refreshment and governance enhancement process which it launched after it moved from a dual to a single class share structure in 2022.
Constellation added that, as part of this process, it has entered into Information Sharing and Cooperation Agreements with Elliot. Per the agreement, Elliot has agreed to standstill, voting, confidentiality, and other provisions.
“We are excited to welcome Luca and Bill, who bring strong financial expertise that we believe will greatly benefit Constellation’s board and management team, as we focus on long-range planning, capital allocation, and financing strategies,” Constellation CEO Bill Newlands said.
“We appreciate the perspective provided by our counterparts at Elliott, who have provided valuable input as we continue to take steps to enhance value to the company’s shareholders and other stakeholders.”
Constellation shares had added 2.9% at US$261.60 before the opening bell in New York.
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