Dates now set for crucial votes on Kerry Co-op shareholding
Published 05/07/2011 | 05:00
The dates have been set for two crucial votes by Kerry suppliers on a proposed rule change which would allow Kerry Co-op's shareholding in Kerry Group plc to be cut significantly.
The co-op board has signalled its intention to divest a quarter of its shareholding in the Kerry Group plc if the vote is carried.
This would involve a share exchange with the plc worth €290m to the co-op's 12,500 A, B and C shareholders.
The first of the special general meetings is set for the Brandon Hotel, Tralee, on Wednesday, July 20, with the second ballot at the same venue on Tuesday, August 16.
The proposed rule change would allow the co-op's shareholding in the plc to fall below the current 20pc threshold.
At the moment the Kerry Co-op's stake in the Kerry Group plc is 22.8pc and cannot drop below 20pc. However, the proposal would see this threshold deleted and a new threshold of 10pc plus one share introduced.
In order for the vote to be carried it needs 75pc support from the Kerry's 4,400 milk suppliers, which are classed as A shareholders in the co-op.
It is also being proposed that any new move to cut the co-op's shareholding in the plc below the 10pc threshold should simply require a majority of the co-op's A and B shareholders.