Dia changes its structure and names Faustino Domínguez executive director in Spain

Dia changes its structure and names Faustino Domínguez executive director in Spain


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The chain of supermarkets Dia takes a particularly black week in the markets, chaining historical lows. Thus, on Monday it plunged 42% after announcing a cut in the expected benefits, while yesterday the fall was 8.8%. For that reason, the leadership of the group met yesterday to try to alleviate the situation. According to ABC, the board of directors of the supermarket chain investigates a "hole" of about 70 million euros in its 2017 accounts, a fact that has generated a corporate earthquake within the Spanish distribution company.

In addition, the executive director Amando Sánchez Falcón was suspended from work and salary for a month. But according to sources close to the company have informed this newspaper, the days of the former director of Abengoa as executive director have come to an end and will be replaced by Faustino Domínguez, who has already assumed this position in Portugal from 2014 to 2017, date in which he joined the DIA Group Management Committee as executive director of Enseña DIA in Spain.

On the other hand, the chain will also undertake the creation of a department called "corporate secretariat", which will be responsible, among other things, for financial control, asset security, information security and insurance. In turn, from the company do not rule out more changes in the next hours.

As of today, the chain has not improved its stock market results. Despite the fact that in the opening the securities had rises of around 6%, at this time of the afternoon they fall more than 12%, marking a value of 0.874 euros. The total capitalization of the company now stands at 556 million euros, far from the maximum of 5,000 million achieved in 2015.

Waiting for movements

The value of the titles of Dia is another key to this business crisis. And it is that the market expects that the maximum shareholder of the company, the Letterone fund, makes some movement, either shareholder or of intentions, to calm the situation of serious instability that lives the company.

The fund is owned by Russian tycoon Mikhail Fridman and has the 29% of the shares of Dia, just below the legal limit of 30% that the law of takeover bids (opas) establishes as mandatory to present an offer for the whole. The fall of the price of the titles and the complicated situation that crosses the company centers in him all the looks.

However, according to the legislation, a company can not launch an offer for a value lower than a purchase made in that same company in the previous 12 months. And Letterone entered Dia last January, when the securities traded around 4 euros, so the logical thing is to wait at the beginning of 2019 to make any offer and take advantage of the fall in value.

Anyway, the crisis experienced in the chain, which has 7,400 stores in Spain, Portugal, Argentina and Brazil, has been used by Fridman to move his chips. On Monday, the already announced departure of Ana María Llopis as president of Dia was also confirmed. Llopis was provisionally relieved by Stephan DuCharme, Fridman's most trusted man, who will also hold the position of vice president.

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