Farmers get €100m windfall in new Glanbia share deal
Farmers are in line for a €100m payday after voting in favour of a spin-out of valuable shares in dairy giant Glanbia plc and the purchase of a slice of key agri-business and consumer foods companies.
Almost 2,400 farmer members of Glanbia Co-op descended on Punchestown Event Centre where they pushed the deal over the line with over 90pc in favour.
The co-op will now spin out 5.9 million shares in Glanbia plc to all members. Based on the Glanbia plc closing share price of €17.13 from February, the value of the spin-out is estimated at €100m.
For active dairy farmer members, the average value of the spin-out would be €10,791. This would be worth approximately €6,637 for a member with the average shareholding.
It had been expected farmers would back the deal with around €10,000 worth of shares on the table for active Glanbia farmers after a volatile two years that saw sharp dips in dairy and grain prices.
The deal saw the Co-op's farmers agree to form a new joint venture Glanbia Ireland to run the network of more than 50 agri-business stores and take over well-known brands such as Avonmore and Kilmeaden cheese.
Farmers voted over 91pc in favour of sharing out €100m of the co-op's stake in the plc amongmembers through the spin-out of 2pc of the plc shares.