Co-op members vote to cut Glanbia plc stake to 41%
Members of Glanbia Co-operative yesterday voted in favour of a proposal to reduce the co-op’s stake in Glanbia plc to 41 per cent, in the first of two votes on a proposal that will have major implications for the ownership profile of Glanbia plc.
Just over 60 per cent of eligible voters attended the ballot in Kilkenny, with 82 per cent of them backing the proposal which needed a 75 per cent threshold to pass.
Under co-op rules, a 75 per cent majority is also required at the next ballot on December 12th.
Welcoming the results of the ballot, Glanbia chairman Liam Herlihy urged co-op members to attend the second vote.
If passed, the proposal will see Glanbia co-op reduce its shareholding in Glanbia plc to 41 per cent from 51 per cent.
Some 3 per cent of those shares, approximately €67 million, will be used to fund the new joint venture deal with Glanbia plc, which was announced earlier this month.
The remaining 7 per cent – about €157 million – will be distributed to co-op members, who will be free to sell or retain those shares. It is estimated that farmer shareholders will receive, on average, €15,000-€20,000 worth of plc shares.
The new joint venture, Glanbia Ingredients Ireland, will take over management and control of Glanbia’s dairy manufacturing assets.