Constellation Brands Gets Proposal From Sands Family To Transition To Single Class Stock Structure

(RTTNews) - Constellation Brands, Inc. (STZ) said it has received a non-binding proposal from the Sands Family to declassify the company's common stock and transition to a single class common stock structure. The proposal contemplates that each share of class B common stock would be converted into 1.35 shares of class A common stock. It is expected that the Sands Family will continue to be the company's largest shareholder.

Constellation's Board has established a Special Committee to evaluate the proposal. Any potential transaction would require the approval of holders of a majority of the shares of class A common stock that do not also hold shares of class B common stock.