Shareholders in Glanbia Co-operative Society are expected to endorse a range of proposals which, if approved, will result in them sharing a windfall of around €238m.
The co-op’s board will seek member approval at a special general meeting which is scheduled to take place from 12pm tomorrow in Gowran Park Racecourse, Co Kilkenny. Only eligible members will vote upon the proposals, but the windfall will be shared by all members.
Depending on the length of the meeting, Glanbia expects to have the result of the vote by around 4pm tomorrow, and expect to hold a press briefing shortly afterwards.
“The proposals are aimed at releasing a portion of the value of the society and making it available to members at a time of significant expansion and investment in the Irish dairy industry,” Glanbia stated.
The proposals include the transfer, via a share spin-out, of 10m Glanbia plc shares, valued at approximately €170m, to all existing members of the society.
The co-op will also create a €68m members’ support fund through the sale of 4m Glanbia plc shares. The figures are illustrative, based upon Glanbia plc official €17.03 closing share price of March 13.
“An additional objective of the proposals announced is to strengthen the current relationship between society shareholding and milk supply,” Glanbia stated.
“This will be achieved by facilitating the application by milk suppliers to the Glanbia Group to become members of the society through the issuing of up to three million new shares in the society. Other suppliers who meet the qualifying criteria may also apply for membership through this initiative.”
The society will also initiate a share buy-back plan to purchase up to 3m existing shares from current members, thus facilitating a voluntary sale mechanism for members who wish to participate in this plan.
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