Glanbia's shareholder vote makes company's dream a reality
Published 29/11/2012 | 05:00
The farmers will now gain a windfall in PLC shares worth more than €15,000, while institutional investors in the PLC will be happy to see the co-op lose its controlling stake in the publicly traded company.
The farmer shareholders will now vote again on the deal in a fortnight's time, but the fact that 75pc of voters approved it yesterday means the second vote is likely to pass without hindrance.
The funds from the sale will be used to finance the co-op's 60pc share of the new milk processing joint venture.
That should be welcomed, as it significantly reduces the debt burden on the joint venture – and by extension the co-op.
He has faced stiff opposition, but for Glanbia PLC boss John Moloney, the vote also means the hard part is now done.
He is unlikely to admit it publicly, and nor should he, but after nearly three tough years, he is now in a position to lead a fast-growing, high margin nutritionals business. At last, the dream is within his grasp.