Glanbia sale has issues to iron out
Published 16/03/2010 | 05:00
There is no certainty that the proposed purchase of Glanbia's Irish milk processing, consumer foods and agri-trading operations will be given the green light by its farmer shareholders.
Any deal will require the backing of 75pc of the 7,300 shareholders in two votes.
The challenge in delivering this is not being underestimated by the co-op board. However, they are precluded from holding farmer shareholder meetings until after an offer is actually made.
This initiative is very much one that is being driven by the co-op board. It is viewed as an opportunity to bring the fortunes of the business back under farmer control.
However, while this is broadly supported by milk suppliers, it may be more difficult to convince the co-op's 3,000 agri-trading shareholders that breaking clear from a successful operation, such as Glanbia plc, is a good idea.
In this sense, the farmer meetings will be vital. The word from farmer representatives who have met with the board has been very positive.
They maintain that the board has a sound plan and a very focused view of how they see the business developing should the buyout proposal go ahead.
The key issue from the farmers' perspective is what's in it for them.