Glanbia Co-op Approves €224 Million Share Spin-out and Sale
Glanbia Co-operative Society members have resoundingly approved a €224 million share spin-out and sale of Glanbia plc shares after a ballot. Following the share spin-out and sale, the Society will hold a 41.4% stake in Glanbia plc, worth over €920 million.
The Society currently owns 51.4% of Glanbia plc. The Society will proceed with the placing of 3% of the issued share capital of the plc. The share spin out of 7% of the issued share capital of the plc to members is expected to be completed in March 2013, enabling members to either hold or sell these plc shares depending on their individual circumstances.
Glanbia plc and the Society recently formed a joint venture – Glanbia Ingredient Ireland. The joint venture incorporates the business and assets of Dairy Ingredients Ireland, a business unit of the Dairy Ireland segment of Glanbia plc, including its 45% share of the Corman Miloko Ireland joint venture and its 23% shareholding in the Irish Dairy Board. The new joint venture, is 60% owned by the Glanbia Co-operative Society and 40% owned by Glanbia plc. Glanbia Ingredients Ireland is the largest dairy ingredients processor inIreland, assembling a milk pool of 1.6 billion litres and processing it into about 180,000 tonnes of dairy ingredients largely for export to over 50 countries worldwide.
Society Chairman, Liam Herlihy comments: “The vote concludes an historic and transformative process for the Society and its members. Members will directly hold €157 million of value in Glanbia plc and the Society has the benefit of having cash resources, a 60% direct stake in a world class dairy business and 41.4% of Glanbia plc. This is a fitting return for members’ investment over many years and for their unprecedented commitment, goodwill and support during this approval process.”
