Lead Campari shareholder settles tax dispute

Core Viewpoint - Lagfin, the Luxembourg-based holding company controlling the majority of Campari's voting rights, has agreed to pay €405 million ($474.5 million) to settle a tax dispute in Italy to protect the interests of all Campari shareholders [1]. Group 1: Tax Dispute Details - Lagfin had €1.3 billion ($1.49 billion) worth of shares seized by Italian authorities due to allegations of tax evasion [1]. - The Italian financial police enforced a precautionary seizure order over €1.29 billion of shares, claiming that capital gains exceeding €5.3 billion were left undeclared after Lagfin absorbed its Italian subsidiary [2]. - Lagfin maintains that it has always complied with applicable regulations, including Italian tax laws, and asserts that the exit tax was not applicable [3]. Group 2: Settlement Agreement - Lagfin will make an initial payment of €152 million by the end of the year, with the remaining amount to be paid in equal quarterly installments between June 2027 and September 20, 2029 [4]. - The company believes that litigation could have negatively impacted Campari's share price, despite Lagfin's confidence in prevailing in court [4]. Group 3: Corporate Purpose - Preserving control of Campari is central to Lagfin's corporate purpose, and the company aims to safeguard the interests of current and future investors [5].