Glanbia members ‘have role in buyout offer’
Irish Farmers Association president John Bryan said it was critically important that Glanbia Co-op present full details of the offer to every shareholder. This was necessary so that all farmers can have a transparent debate and make an informed decision when it comes to voting on the proposal.
“The outcome of these discussions will have long-term implications, not just for Glanbia Co-op shareholders, but for the entire Irish dairy and grain sectors,” he said.
Mr Bryan said the IFA will liaise widely with its membership and is organising meetings in the relevant counties to provide an opportunity to discuss the pros and cons of the Glanbia Co-op move.
Details of the conditional agreement by the plc to sell its Irish dairy and agri-business to Glanbia Co-op for up to €343 million are being forensically examined by both sets of shareholders this weekend.
The proposal is subject to the approval of 75% of society members and 75% of milk supplier members attending and voting at two special general meetings on May 10 and May 14 respectively.
It is also subject to shareholder approval at an extraordinary general meeting to be convened by Glanbia plc and the successful completion of share placing.
The co-op’s chairman Liam Herlihy said the society’s initiative is a significant opportunity for its members to own and control a world-class business that is well invested and cost competitive, and will operate for the benefit of members.
“This is a large scale organisation with revenue of over €1 billion, sustainable cash earnings of €70 million, 1,900 employees and export sales to 50 countries worldwide. It will make the society and its members’ owners of the No. 1 Dairy Group in Ireland and one of the Top 15 dairy companies in Europe,” he said.
Mr Herlihy said market reform has created new opportunities for growing milk supply for the first time in 25 years and global demand for dairy products is supported by a growing world population and emerging large economies.
“All of this means the timing is right now to undertake this acquisition so that we can freely pursue growth and development opportunities through leadership and investment.
“The society’s board is unanimously in favour of the acquisition and we urge members to vote yes to ensure they have a say in building a sustainable future for all our members,” he said.
Glanbia plc group managing director John Moloney said in a changed global dairy market environment, the time and opportunity is now at hand to recognise and embrace the need for transformation. “This transaction provides the prospect of reshaping the business and unlocking growth and development potential for both the society and the company.
