Lagfin, the Luxembourg-based holding company that controls the majority of Campari’s voting rights, has agreed to pay €405m ($474.5m) to settle a tax dispute in Italy.
The company said yesterday (16 December) it had opted for a settlement “to protect the interests of all Campari shareholders”.
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Lagfin, which controls 80% of Campari’s voting rights, had had €1.3bn ($1.49bn) worth of shares seized by the Italian authorities, which had accusing the investor of tax evasion.
On 1 November, Italy’s financial police, the Guardia di Finanza, said it had enforced a “precautionary seizure order” issued by the Monza court over €1.29bn of shares “against a Luxembourg-based holding company”.
According to the authorities, capital gains exceeding €5.3bn were allegedly left undeclared after Lagfin absorbed its Italian subsidiary. Those gains, they argued, should have been taxed when the assets were transferred out of Italy.
Campari, which makes Aperol and Courvoisier, maintained the “tax litigation between Lagfin and the Italian tax authorities does not concern either Davide Campari-Milano or any of its subsidiaries”.
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By GlobalDataIn Lagfin’s statement yesterday, the investor said it has “always operated in full compliance with all applicable regulations, including Italian tax laws, and maintains that the exit tax was not applicable”.
“While Lagfin is confident that it would have prevailed in litigation, such proceedings would have inevitably extended over several years and through multiple levels of judgment. Although this would never have affected Lagfin’s control over Campari – even in the unlikely event of an adverse ruling – it could have negatively impacted Campari’s share price.”
Under the agreement with the Italian Revenue Agency, Lagfin will make an initial payment of €152m by the end of the year. The outstanding amount will then be paid in equal quarterly instalments between June 2027 and 20 September 2029.
“Preserving control of Campari is at the core of Lagfin’s corporate purpose, and the company considers it its duty to do everything necessary to safeguard the inter ests of those who have invested, and will invest, in Campari, shielding them from matters unrelated to the company,” Lagfin added.
