Glanbia Co-op shareholders will vote on a series of proposals at a Special General Meeting in Punchestown Event Centre on Thursday 18 May
Glanbia Ireland will be a new strategic joint venture 60% owned by Glanbia Co-op and 40% owned by Glanbia plc
Glanbia Co-op also proposes a €100m* “spin-out” of Glanbia plc shares and the allocation of €40m to Member Support
Glanbia Ireland will combine Glanbia Ingredients Ireland (GII) and Dairy Ireland’s Glanbia Consumer Products and Glanbia Agribusiness as a joint venture, 60% owned by the Co-op and 40% owned by the plc. This builds on the successful GII joint venture established in 2012.
Glanbia Ireland will be a €1.5 billion diversified business majority owned by Glanbia farmers. It will be Ireland’s number one dairy processor and one of the top 10 dairy companies in Europe. It will own leading consumer and agri brands such as Avonmore, GAIN Feeds, Kilmeaden Cheese, Premier Milk, Mymilkman.ie and Wexford cheese.
The financial strength of the new Glanbia Ireland business will allow it to fund a €250 – €300 million investment programme to 2020 without a requirement for supplier contributions. There is also a flexible profit retention policy proposed, which increases Glanbia’s ability to support farmer suppliers in times of market volatility.
Glanbia Co-op has also confirmed proposals to distribute by way of “Spin-out” c.5.9 million shares in Glanbia plc to all members of the Co-op and to create €40 million in Member Supports. The value of the share “Spin-out” is an estimated €100 million based on the Glanbia plc closing share price of €17.13 on Friday 17th February 2017. This would be worth approximately €6,637* for a member with the average shareholding. For active dairy farmer members, the average value of the spin-out would be €10,791*.
Subject to Member approval, the Board of Glanbia Co-op proposes to allocate up to €40 million of its resources to Member Support. This will be 50% funded by the sale of Glanbia plc shares, with the balance from Co-op resources. Payments will be in the proportion of 75% patronage to active members and 25% Special Dividend to all Members.
Today the Co-op holds 36.5% of the issued shares in Glanbia plc. If all of the proposals above are approved, the Co-op would own 31.5% of the issued share capital in Glanbia plc.
These proposals by the Board of the Co-op are subject to Member approval and will be voted on by eligible Members at a Special General Meeting (SGM) of the Co-op which will take place at Punchestown Event Centre on Thursday 18 May. The proposals have the unanimous support of the Board and Council of Glanbia Co-op, who recommend them to Members for approval.
The Chairman of Glanbia Co-op Henry Corbally said:
“The proposed creation of Glanbia Ireland is an exciting development for Glanbia farmers. It brings the strong portfolio of Glanbia’s Irish dairy and agribusiness assets into majority Co-op ownership while building on the strong partnership with Glanbia plc. I would encourage all Members to familiarize themselves with these proposals and to attend our SGM in Punchestown Event Centre on 18 May.”
Siobhán Talbot, Group Managing Director of Glanbia said:
“Having established GII and successfully managed the transition to a post milk quota environment there is a compelling rationale to combine the Irish businesses and supply chain to create efficiencies and scale. As a top 10 dairy company in Europe exporting to over 60 countries, Glanbia Ireland would have the scale to invest in innovation and growth on a standalone basis.”
“GII suppliers plan to supply 30% more milk in 2020 than in 2016. The financial strength of the Glanbia Ireland business will allow it to fund a €250 – €300 million investment programme to 2020 without a requirement for supplier contributions”.
Source: Farmers Journal
Link: http://www.farmersjournal.ie/glanbia-co-op-shareholders-to-vote-to-create-glanbia-ireland-joint-venture-275122