IAWS sets plc process in train
The historic decision will be taken at an annual general meeting and special general meeting of the co-op.
The co-op yesterday approved the process to allow the change take place when the meetings take place within the next few months.
This follows a decision in January 2004 when the IAWS board approved the growth strategy.
Part of the plan is to give more money back to members of the society. At yesterday’s meeting it was confirmed that the share exchange allocating 11 million IAWS Group Plc shares to co-op shareholders on a pro rata basis will take place in the second half of the year.
The IAWS shares are worth about €130 million, a significant windfall for the 30 plus co-ops dotted around the country who have stakes in the business. Similar exercises were successfully completed in 1996 and 2002 when 31.1 million IAWS shares were passed back to members.
The co-op said yesterday it is positioned in growth areas that will benefit from a strong Irish economy. It has built a 26% stake in NTR Plc, a company involved in toll roads, road construction, as well as waste management, renewable energy and broadband. The statement also noted that terms have “been agreed with the SWS Group subject to supplementary due diligence and legalities”.
IAWS is to pay €64m for parts of SWS, including wind energy, waste management and outsourcing services. SWS is owned by the four West Cork Co-ops and Dairygold, with management holding a 25% non-voting stake.
The initial price for SWS was to be €50m up front with earn outs to be decided. After some tough bargaining, the price was cut to €42.50m with a further €21.50m to be paid over three years, provided certain targets are met by the SWS division of the business.
Other co-op assets include full ownership of Irish Pride Bakery and Premier Proteins as well as a 50% interest in Greenore Port and a 45% stake in French fertiliser company Cedest Engrais.
