Farmers consider takeover EGM
Fresh Milk Producers (FMP), representing approximately 30% of the suppliers to Glanbia’s €300 million gallon milk pool, has called on the board of Glanbia Co-operative Society to convert Glanbia to a farmer-owned co-op.
FMP chairman Eamonn Bray stressed they do not intend to make a bid for Glanbia but said they want a debate on the issue.
“We believe there is a groundswell of support for farmers to re-take control of the business. The plc has not delivered for farmers,” he said.
Mr Bray said FMP did not want to go down the road of tabling a motion for an EGM until a full debate has taken place.
“It is a route we might take in the future,” he said yesterday.
He said they believed the takeover should be financed by debt in the current low interest rate environment. However, the co-op already has debts of €38m.
Close to 14% of Glanbia shares are in farmers’ hands, so hitting the required 80% support for a takeover would require the support of just 12% of the remaining shareholders, if farmers were 100% behind the plan.
Glanbia plc said yesterday the board of board of Glanbia Co-op has considered all aspects of the proposal and has concluded that this action would not be in the best interests of its members.
Glanbia Co-op’s board said it remains committed to the group’s strategy and believes that this is best achieved through the existing structure.
However, Mr Bray said the need for stability and confidence has never been as great in Irish farming as the Fischler reforms become a reality ahead of WTO negotiations.
“The benefit of the co-op converting Glanbia plc into a farmer-owned co-op include a complete shift in current shareholder focus under the current public company structure.
