Constellation Brands Inks Deal With Sands Family To Eliminate Class B Common Stock
(RTTNews) - Beverage alcohol company Constellation Brands (STZ, STZ.B) announced Thursday that following the recommendation of a special committee comprised solely of independent directors, its Board of Directors has approved, and will recommend to shareholders for approval, a proposal to eliminate the company's Class B common stock.
The proposed transaction contemplates that each outstanding share of the company's Class B common stock, including those owned by the Sands Family, will be converted into the right to receive one share of Class A common stock plus cash consideration in the amount of $64.64 per share of Class B common stock, or a total amount of $1.5 billion.
This represents a 26.5% premium relative to Constellation's Class A common stock closing share price as of June 29, 2022.
Upon completion of the reclassification, Robert and Richard Sands, who currently serve as Executive Chairman of the Board and Executive Vice Chairman of the Board, respectively, will retire from their employment with Constellation Brands in their current executive capacities.
Robert Sands will become Non-Executive Chairman of the Board and Richard Sands will continue on as a Board member. It is expected that the Sands Family will continue to be Constellation's largest shareholder following completion of the reclassification.
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