Farm Ireland
Independent.ie

Sunday 20 August 2017

Glanbia restructure plans clear final hurdle at EGM

The Glanbia Ireland joint venture will be an enterprise of scale, with a 2.4 billion litre milk pool, revenue of €1.5 billion, 11 processing plants and over 1,800 employees.
The Glanbia Ireland joint venture will be an enterprise of scale, with a 2.4 billion litre milk pool, revenue of €1.5 billion, 11 processing plants and over 1,800 employees.
Ciaran Moran

Ciaran Moran

At an extraordinary general meeting today, Glanbia's Independent Shareholders overwhelmingly approved a deal which will see the disposal by the plc of its Dairy Ireland business.

Both respective shareholders of Glanbia and the Co-op have now approved the Proposed Transaction.

The deal will create a joint venture in Glanbia Ireland, which will combine Glanbia Ingredients Ireland (GII) and Dairy Ireland’s agri-business and consumer foods division.

Glanbia Ireland will combine Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness, as a joint venture 60pc owned by the Co-op and 40pc owned by the plc.  This builds on the Glanbia Ingredients Ireland (GII) joint venture established in 2012.

As a result, of todays vote Glanbia co-op now intends to sell approximately 8.7 million Glanbia shares, equivalent to 3% of the issued share capital of Glanbia (the 'Placing') to part finance the Proposed Transaction, and to additionally distribute approximately 5.9 million Glanbia shares to over 14,000 individual Co-op members, equivalent to 2% of the issued share capital of Glanbia (the "Spin Out").

Based on the Glanbia plc closing share price of €17.13 from February, the value of the spin-out is estimated at €100m.

For active dairy farmer members, the average value of the spin-out would be €10,791. This would be worth approximately €6,637 for a member with the average shareholding.

The Proposed Transaction is subject to certain completion conditions and is expected to close in early July 2017.


 

J&E Davy and Goodbody Stockbrokers have been appointed by the Society as joint book-runners on the Placing. The Placing will take place via an accelerated book build process.

 

Today the Co-op owns approximately 36.5% of the issued share capital of Glanbia. If the Placing and the Spin out are executed in full the Co-op's holding would reduce to 31.5% of the issued share capital of Glanbia.

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