Who we are

Since LetterOne, DIA’s majority shareholder, increased its stake to 74.8% in November 2019 via its first capital increase, DIA’s market valuation has consistently declined and the stock remains, in our view, undervalued, despite recent operational and financial improvements. DIA has gone through a significant transformation; the management team has focused on the core convenience store business and the sale of non-strategic assets. As a result of this disciplined and focused approach by management, DIA is finally in a position of strength, and recent financial results show improvements in its core markets.

Despite this positive performance, DIA has made little effort to communicate this progress to potential investors, analysts and the broader market. This Coalition of minority shareholders cannot understand why DIA, and its Board, which is chaired by LetterOne’s representative, would not want to proactively promote DIA’s turnaround to the market. Minority shareholders have repeatedly asked for greater engagement. Such appeals have been ignored and, as a result, the Company is materially undervalued.

Shareholders have formally expressed concerns to the Board regarding governance, transparency, and advocating for the protection of all stakeholders. DIA’s current Board has only two members with experience in retail, and no Board member has worked in the food retail sector for more than ten years. Furthermore, none of the Board members have any experience in proximity food retail in Europe, which is DIA’s principal business model. The current Board members’ interests are not aligned with those of shareholders.  The Coalition urges DIA to properly incentivise its Board by aligning Board and executive total compensation with Company share price performance.

The Coalition is also seeking the appointment of a Board member with relevant, recent sector experience to represent minority shareholder interests. In June 2023, DIA considered the appointment of a Director that would represent the interest of minority shareholders; however, this appointment has not materialised, and it has become clear that there was no genuine intention to follow through.

In any case, the members of the Coalition remain as fully independent shareholders, without any kind of commitments on how to vote their shares in the Company.

Our Aims

Our aims are to improve transparency, raise awareness of DIA’s significant potential and build positive momentum for the Company’s future. We wholeheartedly believe in the capabilities of DIA’s employees and the wider organisation, however the Company’s lack of engagement with investors has left us seriously concerned about DIA’s valuation.  By forming a Coalition, we aim to persuade the Company to act in the interests of all stakeholders and promote DIA’s turnaround to the wider market.

We ask that DIA adopts best practice with regard to its investor relations for the benefit of all stakeholders.
We urge DIA to:

• Appoint a minority shareholder representative to the Board with relevant retail experience
• Undertake a comprehensive marketing programme to improve its level of engagement with investors, including:
  • Starting to do post-results roadshows in a few cities e.g. Madrid, Barcelona, London, Paris targeting mostly small cap investors
  • Participate in relevant investor conferences
  • Organise a Capital Markets Day showcasing DIA’s transformation and providing guidance for the next few years
  • Better engagement with media (Spanish national media, investment press and relevant trade publications)