UK data probe hits Watt's surprise BrewDog buyback bid
James Watt’s attempt to buy back BrewDog from Tilray has triggered a UK data privacy investigation, exposing the regulatory risks that accompany distressed asset sales involving hundreds of thousands of retail investors.
James Watt has launched a surprise bid to regain control of BrewDog, just months after selling the debt-laden brewer to Tilray, prompting formal complaints to the UK’s data privacy regulator. Watt announced a plan on Wednesday to acquire the business through a new venture called Second Best, backed by 43,000 former retail investors.
The proposal immediately sparked concerns over how Watt obtained the contact details of the investors, known as "equity punks". Several recipients of the email have filed complaints with the Information Commissioner’s Office (ICO), questioning whether the outreach violated strict data protection laws governing corporate communications.
Tilray bought BrewDog’s brand, intellectual property, UK breweries and 11 bars in March for £33m. The transaction rendered the shares of more than 200,000 crowdfunding investors worthless, creating a highly sensitive base of former stakeholders. Watt’s new offer promises these individuals the "exact same stake in Second Best that you once held in BrewDog, for free".
Watt denied any wrongdoing, stating the communication followed legal advice and used "lawfully obtained data" tied to shareholders' "legitimate interests". He did not explain how the data was sourced. Neither Tilray nor AlixPartners, the administrator of the remaining BrewDog entity, provided the contact lists. Tilray confirmed it did not acquire the shareholder data in the March deal, noting the records remain with BrewDog plc in administration and categorically denying any data was shared with former directors.
The ICO is reviewing the complaints and can impose fines or mandate operational changes if it finds a breach of the General Data Protection Regulation. For market professionals, the case highlights the complex data-handling liabilities that arise when distressed assets with large retail shareholder bases are carved up.
Ravi Naik, a legal director at data protection specialist AWO, noted the campaign raised significant compliance questions. "Key questions are how the people who received the email were selected and whether the email campaign was compliant with the law," Naik said.
The outreach has also alienated some of the very investors Watt is courting. Former equity punk Marc Knox said he initially laughed at the email but decided to act after seeing widespread confusion online. "I saw there were lots of people saying the same thing: ‘How has this joker got my details?’" Knox said.
