Glanbia vote success, but there's still two hurdles to jump
John Moloney was a relieved man yesterday. Glanbia secured an overwhelming 71pc majority to secure a deal to hand direct control of its Irish dairy subsidiary to a farmer-led co-operative.
The deal reduces the co-op's stake in Glanbia to 51.4pc from its current 54.4pc. But, crucially, the vote paves the way for a second ballot for the co-op to cut its stake by a further 10pc to 41pc.
The co-op's 8,000-strong members will be asked to vote in two stages on November 28 and December 12. That vote, however, would require the approval of 75pc of shareholders, above the 71pc who voted in favour of the joint venture yesterday.
Over two years ago farmer-shareholders rejected the deal by a slim margin. A total of 73pc of farmer shareholders voted in favour of the move, just short of the required 75pc.
It's a tough hurdle to clear and even tougher when you have to clear it twice. But Glanbia just might do it this time.