Donegal Investment Group said its “current intention” is to delist from the Irish stock market by the end of August, having returned almost €112 million to investors over a decade after selling most of its assets.
The company, which floated in 1997 under the name Donegal Creameries following the tie-up of several dairy co-ops, became a cash shell under the rules of Dublin’s junior Euronext Growth market after selling its seed potatoes business IPM to Netherlands-based Royal HZPC Group for €13.9 million up front. A further €2.4 million will be held in escrow for two years.
It plans to return €15 million of its current €16.4 million of cash to shareholders in June by redeeming more than three-quarters of each investor’s remaining shares, it said in a shareholder circular issued in recent days ahead of its annual general meeting on March 27th.
“It is the current intention of the board to delist from Euronext Dublin (the Irish stock market) on or before 31 August 2026, which will require the passing of an approval resolution at an extraordinary general meeting,” the company said.
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Alternatively, the company could remain listed if it completed an acquisition constituting a reverse takeover within 12 months of completing the IPM sale last month. However, there is no indication that any such deal is in the offing.
A delisting would leave Euronext Dublin with just 23 public limited companies (plcs), down from about 70 in 2007. Of the remaining plcs, PTSB is currently up for sale, Malin Corporation is in wind-down, Senus is quoted only on the springboard Euronext Access market and has not traded since early January, while Hammerson’s Irish listing is secondary to its London quotation.
Businessman Nick Furlong and his family investment vehicle Pageant Investments, owning just over 13 per cent between them, according to Donegal Investment’s latest annual report, stand to receive close to €2 million from the share redemption plan. They have also been among the main beneficiaries from buy-backs over the past decade.
Former group chief executive Ian Ireland and company chairman Geoffrey Vance are on track to receive €525,000 and €360,000, respectively, adding to their significant cash returns from other share redemptions in the past.
Donegal Investment has about 1,400 shareholders, though close to 500 of these hold 50 or fewer shares – or 1 per cent of the company between them. These smallholdings shareholders – many of whom are inactive – will have all of their stock redeemed under the buyback plan, according to the circular.
Over the past 15 years, Donegal Investment has sold down its portfolio gradually. The sale of its milk and retail business in 2011 was followed over the years by the disposals of Monaghan Mushrooms, Grianán Estate Organic Farm, animal feed company Robert Smyth & Sons and dairy-based products business Nomadic.
It leaves the group with potato seed companies in India and Kenya. “The board is looking at options to realise value for shareholders from these investments,” according to the circular.
