Corona parent Constellation Brands Inc. STZ on Tuesday said will appoint two new independent directors to its board and share more information with Elliott Investment Management as part of agreements struck between the alcoholic beverage company and the investment firm. Shares were up 3% after hours on Tuesday. As part of the agreement with Elliott, a big investor in Constellation, Constellation expanded the size of its board to 13 members to appoint William T. Giles, the former chief financial officer of AutoZone Inc. AZO, and Luca Zaramella, the CFO of Oreo maker Mondelez International MDLZ to the board. Their terms will expire at Constellation’s 2024 annual shareholder meeting. Over that time, Constellation has agreed to limit the size of its board to 13 members. However, the board still has flexibility to add one more in order to appoint someone who “meets certain independence requirements and is also a current or former chief executive officer of a publicly-traded company,” according to a filing. Constellation will also share “certain confidential information” with Elliott ahead of a company investor day later this year. In a release, Constellation said the information-sharing pact would help “facilitate collaboration” with Elliott. Elliott said Constellation’s “meaningful growth potential, powered by its premier Mexican beer portfolio, is not currently reflected in the company’s stock price,” and expressed confidence in Constellation’s executive team.
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