Sale of SWS assets cleared as standoff between board and management ends
Chairman of SWS Co-op, Raymond Collins, said yesterday that progress has been made on the due diligence programme.
When completed it will result in the energy, waste and business process segment of SWS being consolidated into the former IAWS Co-op business, now to be called One51.
It was already reported that October was the deadline for the deal and that now looks to be the case.
At one point, the management of SWS were against the merger because of the €125 million purchase of a 26% stake in NTR Plc by Philip Lynch.
Mr Lynch is chief executive of the former IAWS Co-op, and was a driving force behind the proposed merger.
It has emerged that at a board meeting last Friday, the management of SWS, led by Kieran Calnan pledged its commitment to the deal.
This commitment was “firmly expressed by the chief executive and management team at last Friday’s board meeting of the SWS Co-op to progressing the consolidation,” the chairman said.
Mr Collins also said he was impressed by the determination shown by the board to get the shareholder decision of April 15, 2005 to merge with IAWS up and running as quickly as possible.
While the negotiations were protracted, a solid deal is now in place, a deal which will deliver real benefit to SWS shareholders and employees, he said.
“The management and directors of SWS are now driving 100% to get the deal completed by the target end October deadline,” he said.
SWS is based in Bandon. The future of key divisions hung in the balance for well over 12 months as the five co-op owners of SWS - Dairygold and the four West Cork Cooperatives hotly debated the proposed merger with One51.
Some of the co-ops, including the SWS management, opposed the deal but they were outvoted by Dairygold, Drinagh and Lisavaird.
