€174m Glanbia windfall on its way to farmers
Published 26/08/2015 | 02:30
Farmers will receive 10 million Glanbia plc shares worth €174m within weeks.
A letter setting out the individual plc share allocations will be sent to 15,600 co-op members this week following the approval of the spin-out earlier this year.
Based on a share price of €17.35, farmers are due to receive an average payout of €11,100.
Henry Corbally, chair of the Glanbia Co-operative Society, said the Co-op still holds a 36.5pc stake in Glanbia plc worth around €1.9bn.
Glanbia said farmers can decide whether to sell or hold onto the stocks after they receive their share certificates next month.
Ian Huggard, head of Irish equity sales with Investec, believes most farmers will not part with the shares despite the fall in milk prices.
"There has been a 4pc to 5pc drop in European markets - it is a bloodbath but Glanbia is only down slightly," he said, adding it was a "defensive stock" that performed well.
Around 800 non co-op members will now be permitted to purchase a minimum €10,000 shareholding in the co-op to access support payment top-ups.