Buyout narrowly rejected by members

A PROPOSED €343m buyout of the Irish interests of Glanbia plc, its largest shareholder, by Glanbia Co-operative Society was narrowly rejected at a special general meeting yesterday.

The co-op’s plan failed to secure the requisite 75% member approval to advance its proposal to acquire the Irish dairy and agri-businesses of Glanbia plc at the meeting of shareholders in Kildalton College, Piltown, Co Kilkenny.

Despite a 73% majority of members voting in favour of the acquisition, the proposal failed – a 75% approval motion was required to green light the proposal under co-op rules.

Glanbia plc shares traded up 8.2% yesterday at €3.08, but the market had closed before the counting of the farmers’ ballot rejecting the deal was completed.

Glanbia will release a trading statement today.

A second special general meeting planned for May 24 will not now proceed as a result of the decision.

A total of 4,060 farmer shareholders attended the meeting. A total of 2,970 voted in favour while 1,097 voted against.

Approval of the proposal would have meant the co-op acquiring the dairy and agri-businesses currently owned by the plc.

These account for revenue of over €1 billion, cash earnings of €70m, 1,900 employees and export sales to 50 countries.

More than 8,000 shareholders were eligible to vote. The turnout was effectively 50% at 4,016, comprised of 2,614 dairy farmers and 1,402 non-milk producers.

Glanbia Co-op chairman Liam Herlihy said he was disappointed at the outcome of the vote, but fully respected the decision of members.

“The board of the society firmly believed and continues to believe that the acquisition was very much in the interest of Glanbia Co-op members.

“Notwithstanding this outcome, we fully accept and respect the result,” he said.

Mr Herlihy thanked all members for the serious consideration given to the issue, for their attendance at the large number of meetings held in recent weeks and their participation in the democratic process – which is at the heart of their co-op.

“I thank my farmer colleagues on the board for their courage and leadership on this substantive issue.

“I also want to acknowledge the tireless support of management and staff who worked far beyond the call of duty during the campaign,” he said.