GLANBIA co-op has sold 3pc of its holding in Glanbia plc, the food group it part owns, as part of the terms of a joint venture to spin out the company's milk- processing business.
The co-op sold a little over 8.8 million shares at €7.60, raising €67.2m. The placement, which was run by Jeffries and Davy Stockbrokers, reduces the co-op's holding in Glanbia plc to 51pc.
News of the placement came as shareholders of Glanbia plc overwhelmingly backed the planned spinning out of the company's milk-processing business into a joint venture with its farmer shareholders.
At an extraordinary general meeting in Kilkenny, 99pc of shareholders supported the deal, which will see the co-op and the plc take on the company's milk-processing function in a joint venture split 60:40 between the two companies.
The vote came a week after more than 70pc of Glanbia milk suppliers supported the co-op's participation in the plan.
The co-op shareholders will now vote twice next month on whether it should sell another 10pc of its shares in the plc in order to finance the venture, which will see a new milk-processing plant built at Belview Port in south Kilkenny.
Glanbia closed in Dublin marginally lower at €7.75.