Wednesday 26 September 2018

Donegal Investment Group shareholders in line for €50m windfall

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

John Mulligan and Bloomberg

Donegal Investment Group, formerly Donegal Creameries, is to return between €45m and €50m to shareholders. Beneficiaries of the move will include about 1,900 farmers who have stakes in the firm.

It will now commence a share buyback tender offer in April this year. Shares in the company closed up 8.4pc at €8.35 in Dublin yesterday.

Donegal Investment Group confirmed that capital return yesterday after it received €41.4m of a €45.5m settlement made last year in relation to a dispute connected with its exit from Monaghan Mushrooms.

Donegal Investment Group said that it's due a further €2m payment before February 19, 2019, and an additional €2m to be paid by the middle of February 2020.

The company said that following unsolicited approaches for its Nomadic Dairies yoghurt subsidiary, the board of that firm is now reviewing its options to maximise shareholder value.

Meanwhile, European indices entered the weekend on a high, lifted by a global rebound in equities following previous jitters from investors.

In the United States, equities headed for the best week in six years as the share recovery pushed into a sixth day. The dollar strengthened after a five-day sell-off.

The S&P 500 Index climbed for a sixth consecutive day, extending a bounceback after the gauge fell last week. The Stoxx Europe 600 Index rose 1.1pc.

In Ireland, the ISEQ Overall Index advanced 0.8pc to end the session a 6,833.41. Shares in Ryanair closed almost 3pc higher at €16.77, while Smurfit Kappa was up 2.6pc at €29.40.

Decliners included travel software firm Datalex, which shed 2.6pc to €3.02.

The UK's FTSE-100 rose 0.8pc, while France's CAC-40 was up 1.1pc. Germany's DAX ended the day 0.8pc ahead.

Irish Independent

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