Italian tax police are seizing assets worth 1.29 billion euros from a Luxembourg-based holding company’s shares in Campari Group. The investigation into fraud allegations involves Lagfin, which is Campari’s controlling shareholder and owns over 80% of the company’s voting rights. The seizure is described as precautionary as police look into tax evasion claims.

Lagfin, the Luxembourg-based company, stated that the investigation is related to a tax dispute from two years ago and has not involved Campari Group directly. Lagfin maintains it has always followed Italian tax laws rigorously and will defend itself vigorously. Campari Group has not commented on the situation yet.

Campari Group, founded in 1860, is a major player in the premium spirits industry, known for its red aperitif and global brands like Aperol and Grand Marnier. Lagfin, linked to the family of Campari Group’s Chairman, has been Campari’s controlling stakeholder since 1995. The seizure of assets is said to have no impact on Lagfin’s position within the company.

Read more at Yahoo Finance: Italian police seize $1.5B in assets from Campari’s controlling shareholder amid tax fraud probe