Kerry Co-op to pay €619.50 for each co-op share under the share redemption scheme
Kerry Co-op will issue payment of €619.50 for each co-op share under the share redemption scheme, it has stated.
The total value of shares redeemed under the scheme is €87.7m.
The co-op stated that following the placing of 835,000 Kerry Group plc shares by Kerry Co-op on Friday, the total value of shares sold was €87.7m, representing an individual price of €619.50 for every co-op share.
According to the board all 1,475 applications under the scheme will be paid in full and the distribution of payments will be made by July 22, 2019. For members applying for a partial redemption, new share certificates will be issued by 10 August 2019.
A second placing under the share redemption scheme will take place in November 2019.
Commenting on the scheme Executive Secretary of Kerry Co-Op Thomas Hunter McGowan said:
“As stated previously, the scheme is the first step that the Board has taken to allow shareholders to unlock the true value of their shares. We are actively working to introduce further initiatives that could lead to a Capital Scheme that will be of benefit to our members.”
However members of the Kerry Co-op Shareholders Alliance want a more tax-efficient option to spin out their shares that would be subject to Capital Gains Tax rather than Income Tax.
"Despite the scheme being rejected at the SGM the Kerry Co-op board are going to make it available to shareholders anyway. But I would urge shareholders to not avail of it and wait until a capital gains tax scheme is offered instead," said Alliance member and Listowel farmer Dave Scannell.
Serious differences have emerged in recent months between the Kerry Co-op board and a section of its shareholders, some of whom are represented by the Kerry Co-op Shareholders Alliance.
Alliance members want to sell their remaining 13.7pc stake in Kerry Group, and share the resulting dividends, worth on average around €165,000, among co-op shareholder
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