Glanbia may net €120m in milk spin-off
John Moloney's Glanbia may net up to €120m from spinning off its milk-processing business into a new joint-venture outfit.
Under the planned deal, Glanbia will own 40 per cent of the new firm, with the co-op holding a 60 per cent stake.
The new business will build one of Europe's largest processing plants near Kilkenny to handle the massive increase in milk production forecast when EU quotas end in 2015.
The new project may cost up to €200m, sparking suggestions that the co-op may sell some of its stake in Glanbia to fund its share.
"The proposed transaction offers a compelling proposition," Mr Moloney told the Sunday Independent, adding that it "would allow Glanbia plc to continue to focus on its successful international growth strategy".
Sunday Indo Business