Tuesday 20 August 2019

Coveney forks out €2.5m for Peacock deal

Greencore’s Chief Executive Patrick Coveney at a Greencore Group PLC
Greencore’s Chief Executive Patrick Coveney at a Greencore Group PLC
John Mulligan

John Mulligan

Greencore chief executive Patrick Coveney has forked out €2.5m to secure his allocation of shares under the group's €522m rights offering to help fund the $749m acquisition of US-based Peacock Foods.

Filings with the stock exchange show that Mr Coveney has acquired just over 1.39m shares being issued under the rights issue, at £1.53 apiece.

The final date for acceptance from Greencore shareholders of their allotments under the rights issue is this morning, when payment also has to be made.

The final results of the rights issue will be made public tomorrow morning, when the new shares will also start trading in London.

Greencore is raising a total of £439.4m (€522m) under the rights issue and securing new debt facilities totalling about £200m (€238m) to help fund the Peacock acquisition.

Earlier this month, Mr Coveney sold nearly 229,000 Greencore shares for £647,000 (€769,000) to help fund his purchase of shares under the rights issue.

Greencore shares surged last month when it announced the planned takeover of Peacock Foods, which is based in Illinois. The deal is transformational for Greencore, deepening its presence in the United States and adding about $1bn in annual revenue to the group.

Greencore already serves clients such as Starbucks and the 7-11 convenience store chain in the US. Currently, the bulk of its business is in the United Kingdom, where its customers include major grocery retail chains.

Mr Coveney, the brother of Housing Minister Simon Coveney, is set to see the amount he can potential earn next year rise significantly as a result of an overhaul of Greencore's remuneration structure. He was paid a total of almost €3m last year.

Under the new structure, he will be entitled to earn as much as 200pc of his base salary under a share-based incentive plan.

Irish Independent

Also in Business