(Bloomberg) -- Activist investor Engine Capital has amassed a stake in C&C Group Plc, the maker of Magners Irish Cider, according to people with knowledge of the matter. 

The hedge fund, which owns just under 5% of C&C, believes the company is undervalued and is pushing for C&C’s board to initiate a strategic review process aimed at a sale, the people said, asking not to be identified discussing confidential information.

In the eyes of Engine, C&C could be an attractive target for either industry players or private equity firms, the people said.

A representative for C&C, headquartered in Dublin, didn’t immediately respond to requests for comment outside of regular business hours. A spokesperson for Engine declined to comment.

Shares in FTSE 250-traded C&C slumped as much as 13% earlier this month — the most in more than a year — after the beverage maker announced a €150 million ($160 million) impairment charge mainly related to the Magners brand and the departure of Chief Executive Officer Patrick McMahon due to previously disclosed accounting adjustments. Chairman Ralph Findlay has assumed the role of interim CEO while the company searches for its fourth permanent chief in as many years.

The stock, which is down about 53% since canceling its Euronext Dublin listing in 2019, closed June 21 in London at 159 pence, giving it a market value of about £615 million ($778 million).

Engine believes C&C, which trades at about 7 times its normalized earnings before interest, taxes, amortization and depreciation, is disconnected from the strategic value of its assets and reflects a discount to private-market transaction multiples, according to the people. The Irish company also owns Italian sparkling-wine maker Ferrari Trento and Scottish brewer Tennent’s.

Transactions involving alcoholic-beverage makers in the UK and Ireland have been picking up in recent years as the industry consolidates around fewer brewers of scale. Danish brewer Carlsberg A/S and Japanese rival Asahi Group Holdings have been involved in several of them: Carlsberg formed a joint venture in 2020 with Marston’s Plc and Asahi acquired Fuller, Smith & Turner Plc’s brewing business in 2019.

Last week, Britvic Plc said it rejected a £3.1 billion unsolicited takeover offer from Carlsberg, which in turn said it was weighing its options following several unsuccessful proposals to the owner of the J2O soft-drinks brand.

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