Glanbia Co-op members to benefit from €92m share spin-out
Glanbia Co-op has transferred approximately €92 million worth of Glanbia plc shares to over 14,700 members.
The spin-out of approximately 5.9m plc shares has a total value of around €92m based on the plc share price of €15.71 at the close of business on 31 August 2017.
The transaction is aimed at releasing a portion of the value of Glanbia Co-op and making it available to members at a time of significant investment on their farms.
Following the completion of the spin-out, Glanbia Co-op will remain the largest individual shareholder in Glanbia plc, with 31.5% of the issued share capital. This shareholding was valued at approximately €1.5bn based on the plc closing share price of €15.71 on 31 August 2017.
Glanbia Co-op also owns 60% of Glanbia Ireland, a joint venture owned 60% by Glanbia Co-op and 40% by Glanbia plc.
A detailed information pack will be issued to Co-op members in mid-September. On receipt of their Glanbia plc share certificates, shareholders can choose to sell or retain the shares as they see fit.
Since 2013, Glanbia Co-op has distributed in excess of €680m of value to members through a combination of Glanbia plc share spin-outs, patronage support and share interest.
Henry Corbally, chairman of Glanbia Co-operative Society, says, “The completion of the spin-out process represents the substantial completion of a wide ranging set of proposals which were overwhelmingly approved by eligible Glanbia Co-op members at the special general meeting held at the Punchestown Event Centre on 18 May 2017.
“In addition to the share spin-out, members approved the creation of Glanbia Ireland through the acquisition of 60% of Dairy Ireland (Agribusiness and Consumer Products). The creation of Glanbia Ireland enables the integration of three strong, well-invested Irish based businesses to create value for all stakeholders.
“Specifically, it will help to maximise the opportunities created by a forecasted 30% growth in milk supply by Glanbia’s Irish milk suppliers to 2020.”
As a result of the spin-out, the acquisition of 60% of Dairy Ireland and the creation of a €40m member support fund, Glanbia Co-op’s ownership of Glanbia plc has reduced from 36.5% to 31.5% of Glanbia plc.
Glanbia Co-op will remain the largest shareholder in Glanbia plc on completion of the spin-out, with a holding valued at approximately €1.5bn based on a share price of €15.71.
