SWS will retain agri-service business
However, all of the Bandon, Co Cork based co-op’s forestry division is included in the business processing, waste management and sustainable energy divisions for which IAWS Co-op has offered up to €64m.
Among the agri-services being retained are artificial insemination, milk recording and farm relief.
The co-op will also hold on to some financial services and accountancy services.
Meanwhile, the sale of assets to IAWS Co-op remains subject to due diligence and board approvals. SWS members will have one year to decide whether they want the consideration paid in cash or shares in IAWS Co-op or a combination of both.
The announcement of the deal also included a recommendation by IAWS Co-op board that 11m shares in IAWS plc currently held by the Co-op would be distributed directly to IAWS Co-op members. These include Kerry, Glanbia, Dairygold and a range of other smaller co-ops in Ireland and Britain.
The distribution of 11m IAWS plc shares would put €128m into the hands of the co-op shareholders. This follows similar distributions in 1996 and 2002 which totalled 31.1m plc shares.
IAWS Co-op said the value of net assets in the SWS deal is over 10m. They include invoice and back-office administration for a range of corporate clients, including Independent Newspapers (Irl), a waste management business, and wind energy interests.
SWS already has one wind farm operating in Northern Ireland and three under construction in Clare, Cork and Kerry, as part of a €180m investment programme in the wind energy sector.
