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Sands Family Proposal Would Relinquish Majority Voting Control At Constellation

April 4, 2022

Constellation’s top shareholders the Sands family has proposed that the company transition to a single class common stock structure. According to information disclosed by the Sands family, the proposal brings “significant benefits that would accrue to the Company and our stockholders,” including by “increas[ing] market demand from investors who prefer single-class structures.”

With the change, the Sands family would remain Constellation’s largest shareholder, but its voting power would be reduced from around 60% to 20%, according to the Wall Street Journal. Constellation said its board of directors has established a special committee to evaluate the proposal. Constellation Brands and energy drink player Monster Beverage are reportedly involved in ongoing talks toward a potential merger that could result in a combined company with market value of $90 billion.—Daniel Marsteller

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