Glanbia shares back at record high as investors back restructuring plans
Glanbia shares are trading near record highs following the recent announcement of major restructuring of the group’s dairy division.
Glanbia PLC shares are now trading at over €18/share levels not seen since February of last year. Glanbia shares have recovered significantly from lows of €14/share in November of 2016.
The share price moves clearly signal backing from the market for Glanbia’s plans for the co-op to buy a 60pc share of Dairy Ireland in a deal worth €112m.
Dairy Ireland is comprised of two businesses. Consumer Products is a supplier of branded consumer dairy products to the Irish market and long-life products for export.
Agribusiness supplies inputs to the Irish agriculture sector and is the leading purchaser and processor of grain and the leading manufacturer of branded animal feed in Ireland.
Glanbia Co-op and Glanbia plc are to form a new entity, Glanbia Ireland, combining Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness, as a joint venture 60pc owned by Glanbia Co-op and 40% owned by Glanbia plc.
This, it says builds on the successful Glanbia Ingredients Ireland (GII) joint venture established in 2012.
Farmers across south Leinster and east Munster will share average windfalls of more than €10,000 if they back the plans which will create a €1.5bn business that will include Glanbia's Irish consumer brands such as Avonmore and Kilmeaden.