Business Irish

Monday 12 November 2018

Greencore shareholders back company’s plan to sell US business for over $1bn

Patrick Coveney, Greencore CEO
Patrick Coveney, Greencore CEO
Gavin McLoughlin

Gavin McLoughlin

Greencore shareholders have backed the company’s plan to sell its US business for over $1bn.

But there was a sizeable rebellion  - around 20pc – against an aspect of how the company plans to return some of the money to shareholders.

At a shareholder meeting in Dublin today, multiple small shareholders complained about the tax implications of Greencore’s plan, asking the company to consider more tax-efficient methods.

The company wants to distribute the bulk of the proceeds as a special dividend – but this will incur income tax for shareholders.

One institutional investor, Polaris, went public in saying that it thought a share buyback would be better.

The company will consult further with shareholders about how to return the money. Chief executive Patrick Coveney told reporters after the meeting that the way the money is given out could change.

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