Wexford Creamery bid goes to members
Shareholders to hear plans for 70pc controlling stake
Published 18/05/2010 | 05:00
The €9m bid by Wexford Milk Producers (WMP) to buy a controlling stake in Wexford Creamery will be outlined to shareholders this week.
WMP is aiming to increase its share in the business from 20pc to 70pc by buying 50pc from UK cheese maker Dairy Crest.
The deal will see Dairy Crest retain a 30pc stake in the Wexford operation, while providing packing and distribution services to the company. Dairy Crest will also continue to sell Wexford-branded cheese on the British market.
The proposed acquisition papers are set to be issued this week, with copies being sent to WMP's 400 shareholders.
An information meeting outlining details of the bid will take place next week. Voting on the deal is scheduled for June 3 when WMP will hold a special general meeting.
WMP members will have to vote on two resolutions. The first involves an amendment to the co-op's rule book and will require a two-thirds majority.
However, a straight majority is all that is required to then give the green light to the take-over offer.
Meanwhile, there was further good news for milk suppliers this week as most processors increased prices for April supplies.