Glanbia Ireland given final vote of approval
Glanbia’s independent shareholders approved the proposed creation of Glanbia Ireland at an ‘extraordinary general meeting’ this morning, May 22.
The respective shareholders of Glanbia PLC and Glanbia Co-op agreed the proposed transaction after an overwhelming 93.1% of the co-op’s shareholders voted for the venture at a general meeting last Thursday, May 18.
Approximately 2,400 eligible co-op shareholders turned up to cast their votes at the special meeting held last week.
Under the agreement, the co-op is expected to pay €112 million to acquire a 60% stake in Glanbia PLC’s Dairy Ireland division; consisting of Glanbia Consumer Products and Glanbia Agribusiness.
It will also distribute approximately 5.9 million PLC shares – 2% of the issued share capital – to over 14,000 individual co-op members in a ‘spin-out’ deal.
The value of the share ‘spin-out’ is an estimated €100 million, based on the Glanbia PLC closing share price of €17.13 on February 17 this year.
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 (based on the above share price).
With an expected annual revenue of €1.5 billion; Glanbia Ireland will own consumer and agri brands such as Avonmore, GAIN, Kilmeaden Cheese, Premier and Wexford.
J&E Davy and Goodbody Stockbrokers have been appointed as joint book-runners on the placing, which will take place via an accelerated book build process.
At present, the co-op owns about 36.5% of the issued share capital of Glanbia. However, if the placing and the spin-out are fully executed then the co-op’s holding will fall to 31.5%.
The deal is subject to certain completion conditions but should close in early July of this year.