Will €10k farmer payout be enough to get Glanbia's restructuring deal over the line?
Farmers have been urged to attend Glanbia Co-op’s Special General Meeting today to make crucial decisions on the important proposed changes to the Glanbia structure.
Glanbia Co-op proposes to pay €112m to acquire a 60pc shareholding in the Plc’s Dairy Ireland division, which consists of Glanbia Consumer Products and Glanbia Agribusiness.
Glanbia Ireland will combine Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness, as a joint venture 60pc owned by the Co-op and 40pc owned by the plc. This builds on the Glanbia Ingredients Ireland (GII) joint venture established in 2012.
The Glanbia Co-op proposal will also distribute by way of 'spin-out' c.5.9m shares in Glanbia plc to all members of the Co-op and to create a €40m Member Support Fund.
The value of the share 'spin-out' is an estimated €100m based on the Glanbia plc closing share price of €17.13 on Friday 17 February 2017.
This would be worth approximately €6,637 for a member with the average shareholding. For active dairy farmer members, the average value of the spin-out would be €10,791.
Making the call IFA President Joe Healy said it is welcome that the proposals increase farmers’ control and ownership of Glanbia consumer foods, including liquid milk, and agri-business in Ireland.
“The proposals also recognise the need for a more sustainable mechanism to support farmers through volatile product prices, while funding important investment to process additional milk output,” Joe Healy said.