Glanbia Co-op transfers €92m of Glanbia plc shares to members
Group will remain the largest individual shareholder in company with 31.5%
Glanbia Co-op has transferred €92 million worth of Glanbia plc shares to over 14,700 members via a “spin-out”.
The transaction is aimed at releasing a portion of the value of Glanbia Co-op and making it available to members “at a time of significant investment” on their farms, the co-op said.
Following the completion of the spin-out, Glanbia Co-op will remain the largest individual shareholder in Glanbia plc, with 31.5 per cent of the issued share capital. This shareholding is valued at approximately €1.5 billion.
Glanbia Co-op chairman Henry Corbally said the the completion of the spin-out process “represents the substantial completion of a wide ranging set of proposals which were overwhelmingly approved by eligible Glanbia Co-op members”.
“In addition to the share spin-out, members approved the creation of Glanbia Ireland through the acquisition of 60 per cent of Dairy Ireland,” he said.
“The creation of Glanbia Ireland enables the integration of three strong, well-invested Irish based businesses to create value for all stakeholders. Specifically, it will help to maximise the opportunities created by a forecasted 30 per cent growth in milk supply by Glanbia’s Irish milk suppliers to 2020.”
As a result of the spin-out, the acquisition of 60 per cent of Dairy Ireland and the creation of a €40 million member support fund, Glanbia Co-op’s ownership of Glanbia plc has reduced from 36.5 per cent to 31.5 per cent of Glanbia plc.
Glanbia Co-op will remain the largest shareholder in Glanbia plc on completion of the spin-out, with a holding valued at approximately €1.5 billion based on a share price of €15.71.