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Glanbia Co-op completes funding for acquisition of Plc shareholding in Glanbia Ireland

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Glanbia Ballyragget. Picture: Alf Harvey.

Glanbia Ballyragget. Picture: Alf Harvey.

Glanbia Ballyragget. Picture: Alf Harvey.

Glanbia Co-op has completed the financing to purchase the 40pc stake in Glanbia Ireland from Glanbia Plc.

Glanbia Ireland is a joint venture that is owned 60pc by Glanbia Co-op and 40pc by the Plc.

As part of its funding of the deal the Co-op sold approximately 2pc of its shareholding in the Plc for about €70m.

Following the completion of the share placement, Glanbia Co-op holds approximately 30.5pc of the issued share capital of Glanbia plc.

Glanbia Co-op has also raised €250m through the launch of an Equity-Linked Exchangeable Bond. The five-year Exchangeable Bond is linked to a pledge of approximately 15.1 million Glanbia Plc shares (5.3pc of the issued share capital).

The Co-op retains full ownership of the pledged shares until such time (if any) as an exchange is exercised in accordance with the terms of the Exchangeable Bond and will continue to benefit from any dividend paid by Glanbia plc on the shares, according to a statement from the Co-op.

The deal remains subject to approval by Glanbia Plc independent shareholders at an EGM at a date to be confirmed.

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John Murphy, Chairman of Glanbia Co-op, said: “I am pleased to confirm to Co-op Members that we have successfully completed the financing arrangements required to put in place the funding for our proposed acquisition.”

“Our Members voted overwhelmingly in favour of taking 100pc ownership of the world-class processing assets closest to our farmers’ interests and we look forward to closing that transaction in the coming months, subject to the approval of Glanbia plc’s independent shareholders at their EGM.”

When the deal was first announced last November, the Co-op said it intended to finance up to 50pc of the proposed transaction through the sale of shares it owns in the capital of the Plc, with the balance to be funded through borrowings.

In December Glanbia plc said it had been informed by Glanbia Co-op that the Co-op is able to fund the €307m deal through a combination of existing cash resources and debt facilities and that it was not contingent on the sale of Plc shares by the Co-op.

Glanbia Ireland says it is the largest milk processor and grain buyer in the country. It operates 11 processing plants, 52 agri-retail branches and has over 2,000 employees.

Commenting on the latest update, Jason Molins, analyst at Goodbody, said: “From a Glanbia plc perspective this is another milestone along the road to complete the €307m disposal of its 40pc stake to Glanbia Co-op.”

Shares in Glanbia were down less than 1pc in early afternoon trading in Dublin on Thursday.


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