Constellation Brands, Inc. (NYSE: STZ) confirmed that the Sands Family has made a non-binding request to declassify the company's common stock and move to a single class common stock structure. Each share of Class B common stock would be changed into 1.35 shares of Class A common stock under the plan.
The proposal will be evaluated by a Special Committee constituted by Constellation's Board of Directors. The Special Committee and the Board of Directors must both accept any definitive agreement with the Sands Family regarding the possible purchase. Furthermore, any possible transaction would need the consent of holders of a majority of the shares of Class A (STZ) common stock who do not also own shares of Class B (STZ.B) common stock, according to the proposal's conditions.
In addition, the proposal promises substantial benefits that would come to the Company and its stockholders, according to documents provided by the Sands Family, including increasing market requirements from investors who favor single-class structures.
Moreover, if the transaction is completed on the proposed conditions, the Sands Family is projected to remain Constellation's largest stakeholder. The proposition was not made in relation to any other corporate transaction, according to information provided by the Sands Family.