Kerry Alliance won't settle for less than full spin-out
Members of the Kerry Co-op Shareholders Alliance have slammed a proposal believed to have been put forward by the co-op board for a partial spin-out of its €2.2bn stake in Kerry Group.
It is understood that the board of the co-op, which has a 13.7pc stake in Kerry Group, is taking advice from tax experts to find a way to undertake a partial share spin-out.
The move by the board comes as 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 Alliance.
Alliance members want to sell their remaining 13.7pc stake in Kerry Group PLC, and share the dividends, worth on average around €165,000, among co-op shareholders.
Alliance leader Donal Counihan said the group wants a full spin-out of shares and wants to set up a new representative structure for active milk suppliers.
"Our strategy has always been to liquidate Kerry Co-op and form a new representative co-op for milk suppliers. We are clear on what we want and we won't settle for anything less," Mr Counihan told the Farming Independent.
Alliance member David Scannell, a dairy farmer based in Listowel, Co Kerry added: "A partial spin-out is not good enough. We want nothing less than a 95pc spin-out."
A well-placed source also said that shareholders are concerned about tax implications around a partial spin-out.