Farm Ireland
Independent.ie

Tuesday 23 October 2018

Former creamery's 1,900 farmer shareholders in line for €50m windfall

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

John Mulligan and Bloomberg

Donegal Investment Group, formerly Donegal Creameries, is to return between €45m and €50m to shareholders. Beneficiaries of the move will include about 1,900 farmers who have stakes in the firm.

It will now commence a share buyback tender offer in April this year. Shares in the company closed up 8.4pc at €8.35 in Dublin yesterday.

Donegal Investment Group confirmed that capital return late last week after it received €41.4m of a €45.5m settlement made last year in relation to a dispute connected with its exit from Monaghan Mushrooms.

Donegal Investment Group said that it's due a further €2m payment before February 19, 2019, and an additional €2m to be paid by the middle of February 2020.

The company said that following unsolicited approaches for its Nomadic Dairies yoghurt subsidiary, the board of that firm is now reviewing its options to maximise shareholder value.

2,400 acre farm

Last year Savills Ireland handled the sale of the group's vast organic farm The Grianan Estate situated in Co. Donegal for €17.425m.

The approximately 2,400 acre property consists mainly of land reclaimed from Lough Swilly, making it particularly fertile and suitable for all farming enterprises. It includes 1,290 acres of organically farmed prime land and grows a range of crops such as cereals, red clover and root crops.

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There is also an extensive range of farm buildings which have overwintering accommodation for 400 head of cattle.

For the past 10 years, the farm has been producing over 3,000t of organic produce per annum including milk, vegetables and cereals. Various Irish household brands are sourced from the farm, including Flavhavan’s porridge oats, Country Cross potatoes, and Organic For Us milk.

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