Grupo Dia Stock Information

LetterOne is a Luxembourg-based active investment fund with nearly $20 billion in net assets under management and a clear long-term vision.

It invests in key sectors for social and economic progress, such as energy, technology, healthcare and retail. Its objective is the sustainable growth of the companies in its portfolio, which it supports throughout each economic cycle. Its team of experts works closely with management teams to strengthen strategy, sector knowledge and competitiveness.

LetterOne is the main shareholder of Dia Group, with a 77.7% stake. Its relationship with Dia intensified in 2019, when it led a Comprehensive Rescue Plan to secure the future of Dia Group at a time of growing financial difficulties. This plan had three main pillars:

1. A Takeover Bid that gave LetterOne majority control of the company in 2019.
2. A capital injection of €605 million in 2019 to secure liquidity and a further increase of €1.028 billion in 2021 to strengthen the company’s balance sheet by converting debt into equity.
3. A comprehensive 5-year transformation plan, focused on:
   
   • Optimise the proximity network to restore profitability.
   • Redefine an attractive value proposition for local customers, focusing on quality and the shopping experience
   • Establish a new, scalable, profitable franchise model
   • Standardise and optimise operations
   • Exit non-strategic businesses (Clarel, Dia Portugal and Dia Brazil) to focus on the core business.

LetterOne’s support and confidence have been crucial in transforming the Group into the leading Spanish proximity supermarket chain it is today: a healthy, profitable business with solid prospects for growth and value creation.