Tuesday 21 November 2017

'Boring' Canadians buy 3pc stake in Glanbia as farmers get shares

Siobhan Talbot, the group managing director of Glanbia
Siobhan Talbot, the group managing director of Glanbia
John Mulligan

John Mulligan

Canadian investment firm Mawer, which bills itself at being expert in the "art of boring" investment choices, now has more than a 3pc stake in Irish nutritional giant Glanbia.

Mawer revealed the stake yesterday, and it's an increase on the less than 1pc it previously owned.

The Calgary company's stake in Glanbia represents a more than €130m investment in a business that has been altered significantly after hiving off its Irish dairy business into a new entity.

In a filing with the stock exchange, Mawer said that it now controls 3.01pc of Glanbia, or 8.9 million shares in the business.

Mawer tells customers that investment should be "boring".

"At Mawer, we aim to take long-term positions in wealth-creating companies run by good management teams," it adds.

The company also controls a stake in Irish agricultural-services firm Origin Enterprises.

In July, Glanbia, headed by group managing director, Siobhan Talbot, finalised a deal to sell its 60pc stake in a joint venture called Dairy Ireland to the Glanbia Co-Op.

Yesterday, Glanbia Co-Op confirmed that more than 14,700 active and retired farmers have been sent out Glanbia plc shares totalling €92m as a result of the deal.

"The transaction is aimed at releasing a portion of the value of Glanbia Co-op and making it available to members at a time of significant investment on their farms," said Glanbia Co-Op yesterday.

Following the completion of the spin-out, Glanbia Co-op will remain the largest individual shareholder in Glanbia plc, with 31.5pc of the issued share capital.

That stake is worth €1.37bn.

Irish Independent

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