Farmers across south Leinster and east Munster will share average windfalls of more than €10,000 if they back plans to create a €1.5bn business that will include Glanbia's Irish consumer brands such as Avonmore and Kilmeaden.
Almost 15,000 Glanbia Co-op farmers will split a €105m windfall if the deal goes ahead. Based on a price of €17.13 a share, that will see co-op members with an average shareholding receive about €6,600 worth of shares each.
However, for active dairy farmers the average payout will be close to €11,000, with smaller payments for retired Co-op members.
Glanbia shares rose to €17.84 yesterday, however, which means the windfalls could be higher by the time all of the details are hammered out.
Glanbia plc - the €5.2bn stockmarket-listed company that is 36pc-owned by farmers through the Co-op - yesterday revealed plans to create a new entity called Glanbia Ireland.
Sales of €1.5bn a year will make it the biggest dairy company in the country, with 1,800 employees.
If the deal goes ahead, the Co-op will own 60pc of the new company. Glanbia plc will own 40pc. Glanbia's existing Irish consumer food brands will become part of Glanbia Ireland, while the stockmarket-listed Kilkenny-based plc will focus more on its global ingredients and other businesses.
It's the second stab the pair are having at creating the new joint venture. A previous effort, in 2010, failed to secure the necessary backing from Co-op members.
An existing joint venture between the Co-op and Glanbia - Glanbia Ingredients Ireland - will form the backbone of the new business.
As part of the deal, Glanbia Co-op will sell 3pc of its 36.5pc stake in Glanbia plc to fund the €112m cost of buying the 60pc share of the venture. It will then split 2pc of its holding, or about 5.9 million Glanbia plc shares, among its members.