Luxembourg-based company Lagfin, which owns 50% of the global drinks giant The Campari Group, has had over €1.2 billion worth of shares seized by Italian authorities amid allegations of tax evasion linked to a corporate restructuring.

Italian financial police said shares were confiscated following a year-long investigation into how Lagfin absorbed its Italian operations. Prosecutors allege that Lagfin failed to pay taxes equivalent to the value of the seized shares during the merger process.

In a statement, Lagfin said it had “always acted in the most scrupulous respect of any applicable laws and regulations, including Italian tax laws,” and vowed to “defend itself vigorously.”

The investigation centres around €5.3bn in undeclared capital gains between 2018 and 2020, on which Lagfin allegedly failed to pay an “exit tax” – a levy applied when companies move their headquarters abroad. Authorities claim Lagfin transferred Italian assets to foreign ownership purely for tax purposes.

The Campari Group, which also owns Italian aperitif brand Aperol, has stated that neither the group itself nor its subsidiaries are under investigation.

Founded in 1860 by Gaspare Campari, the Campari Group is one of the world’s largest spirit producers, owning over 50 brands and distributing in more than 190 countries. The current seizure does not affect Lagfin’s control of the business.