Kerry Co-op members are to share a €270m windfall in Kerry Group shares next month, bringing to €2.9bn the total value of shares transferred to co-op members in the past 20 years.
These figures are based on today’s valuation of €45 per plc share.
Kerry Co-op members will transfer 20% of their co-op shares to the plc, and overnight see their shares gain around €270m in value.
This is the group’s seventh such share exchange since 1993. The overall value of these transfers would exceed €2.9bn gained by co-op members when gauged in today’s share values.
At its AGM next month, Kerry Co-Op intends to increase its ordinary annual share interest to €1.50 per share. The co-op also intends to pay a €1 per share special dividend to its co-op members this June.
Together with the ordinary share interest of €1.50 per share, this amounts to a total co-op share interest payment of €12.3m.
Kerry Co-op also paid out an additional share interest of €1.30 per share last September to ease the financial pressure being experienced by members due to the sustained months of bad weather.
This share exchange was provided for in the rule changes approved by members of Kerry Co-op in 2011.
Kerry’s members have already participated in co-op to plc share exchanges in 1993, 1997, 2002, 2006, 2007 and 2011.
The plc’s shares have soared in value from around €28 per share at the time of the 2011 transfer to €45 today.
The decision by Kerry Co-op to pay additional share interest in Sept 2012 and in Jun 2013 is a direct response to the difficult year being experienced by farmers.
“Kerry will continue to import animal fodder,” confirmed a spokesman for the group. “We have brought in 150 articulated truckloads of fodder, and delivered it to farmers in our catchment area.
“Kerry also introduced a €20 per tonne rebate on all compound feed purchased in the month of April.
“Kerry is charging zero interest on any feed or fertiliser purchased in the first six months of 2013.”
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