Glanbia windfall looms for farmers
THIS WEEK:Expectations are high ahead of the Glanbia Co-op special general meeting this week, with shareholders being urged to vote in favour of a deal to reduce the co-op’s shareholding in the company to 41 per cent.
Under co-op rules, the deal must be passed by 75 per cent of eligible shareholders at two special general meetings. The first, which saw the vote carried with an 82 per cent majority, took place two weeks ago, but the deal also needs to be passed on Wednesday.
Attendance at the final vote is seen as crucial for the outcome, with eligible shareholders receiving letters from Glanbia co-op this week urging them to travel to Kilkenny. Just 60 per cent of eligible voters turned out two weeks ago.
Shareholders have already voted to form a new joint venture between the plc and Glanbia co-op, Glanbia Ingredients Ireland, which will be the largest milk processing business in the country.
Wednesday’s vote is asking farmers whether to offload a further 10 per cent of the company – 3 per cent of which will be used to help fund the ingredients business.
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.
Farmers are estimated to be in line to receive a windfall of an average of €15,000 to €20,000 worth of plc shares if the deal is passed.