Glanbia Co-operative Society Limited has confirmed the transfer, via a spin-out, of approximately 10m Glanbia plc shares to its 15,600 members.

The equity offering has an estimated value in the region of €174m, based on the Glanbia plc official opening share price of €17.35 on August 24, 2015.

This transaction, it says, is aimed at releasing a portion of the value of the Society and making it available to members. On average, each Society member will receive plc shares worth approximately €11,100.

Following the completion of the spin-out, Glanbia Co-operative Society remains the largest individual shareholder in Glanbia plc, with 36.5% of the issued share capital. This shareholding was valued at approximately €1.9 billion based on the Glanbia plc official opening share price of €17.35 on August 24, 2015.

The Society also owns 60% of Glanbia Ingredients Ireland. A detailed information letter, including details of their individual plc share allocations, will be issued to society members this week.

On receipt of their Glanbia plc share certificates in September, members can choose to sell or retain the shares as they see fit.

Chairman of Glanbia Co-operative Society Henry Corbally said that the strong appreciation in the value of Glanbia plc means that shares with a current value of approximately €530m have been transferred to members since 2013.

“The Society still retains a 36.5% plc stake worth approximately €1.9 billion. This spin-out demonstrates the power of the Glanbia model.

“Farmer members are paid a competitive market price for their produce, and also benefit from the value created in Glanbia plc, which ultimately flows back to members through their shareholding in the Society.

“It is also worth highlighting that while the Society’s shareholding in Glanbia plc has reduced somewhat, our majority shareholding in Glanbia Ingredients Ireland remains unchanged at 60%. This is the business of most direct importance to our dairy farmer members.”