STOCK SPIRITS GROUP (Reuters) - Vodka maker Stock Spirits Group Plc's (>> Stock Spirits Group PLC) shareholders voted for all the proposals put forth by Western Gate Private Investments Ltd, handing the top investor a victory nearly two months after it started agitating for changes at the company.
Stock Spirits said on Monday two nominees of the company's top shareholder were elected to its board at the annual general meeting and shareholders voted for a review of the company's mergers and acquisitions strategy.
Stock Spirits has been locked in a battle with Western Gate since April 5, when the investor expressed concerns about the beverage company's performance and called for the removal of its chief executive.
In November, Stock Spirits cut its full-year profit forecast as demand for the company's flavoured vodka fell and the Polish zloty weakened.
Stock Spirits, which operates mostly in Poland, the Czech Republic and Italy, said last month it returned to profit in the first quarter in Poland.
Western Gate is controlled by Portuguese businessman Luis Amaral, the CEO of Eurocash (>> Eurocash SA), which is Stock Spirits' biggest customer in Poland.
The investor, which owns about 9.7 percent of Stock Spirits, asked two of its nominees to be placed on the company's board, a proposal that garnered the approval of three investment advisory firms.
Western Gate had earlier pulled its resolution to remove Stock Spirits CEO Chris Heath after the company announced his early retirement.
About 57 percent of shareholders present at the meeting voted on Monday for the appointment of Western Gate's nominees Alberto Da Ponte and Randy Pankevicz, Stock Spirits said.
Da Ponte and Pankevicz will be treated as non-independent directors as they have been proposed by Western Gate.
Stock Spirits also said it would proceed with the process to identify and appoint two additional independent non-executive directors.
Western Gate was quick to issue a statement, saying it saw "no reason" for the company to use its resources to appoint two more non-executive directors.
Chairman David Maloney told Reuters in April that the company might have to nominate two additional directors to maintain the board's independence and estimated four new directors would cost the company as much as 400,000 euros a year, or $448,280 (£309,372) at current exchange rates.
The company's stock closed up about 2 percent at 161 pence on the London Stock Exchange on Monday. It had gained 8 percent since Western Gate called for changes in the company.
(Reporting by Vidya L Nathan in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel)
By Vidya L Nathan
