Glanbia Co-operative members have voted in favour of a package of proposals which, Glanbia says, will result in approximately €238m of value being made available to all members.
The proposals from the Board of the Society include the transfer, via a share spin out, of 10m Glanbia plc shares, valued at approximately €170m, to all existing Members of the Society. The Society will also create a €68m Members’ Support Fund through the sale of 4m Glanbia plc shares.
An additional objective of these proposals, Glanbia says, is to strengthen the current relationship between suppliers and Society shareholding with the issuing of shares to facilitate new member applications.
The Society will also initiate a Share Buy Back Plan to purchase up to three million existing shares from current Members thereby facilitating a voluntary sale mechanism for Members who wish to participate in this plan.
These proposals were approved by the eligible members of Glanbia Co-operative Society at a Special General Meeting (SGM) of the Society held on Thursday at Gowran Park Racecourse, Co. Kilkenny.
Commenting, Liam Herlihy, Chair of Glanbia Co-operative Society said he was “very pleased” that the members of the Society voted in favour of these proposals.
“The proposals were made at a time of unprecedented change in the Irish dairy sector. In recent months we have successfully commissioned our world class dairy facility in Belview and Milk Quotas have been consigned to history.
Many of our members are in a period of expansion and they clearly felt that this is an appropriate time to make some of the value that has been built up in the Society available to members which will give them both security and resources for growth. It is equally an opportunity to recognise the members who have built up the Society over many years.”
As a result of this vote, the Society intends to sell four million Glanbia plc shares equivalent to 1.35% of the issued share capital of the Company and distribute (spin out) 10m Glanbia plc shares to over 15,500 individual Society members equivalent to 3.38% of the issued share capital of Glanbia plc.
Once the placing and spin out are completed, the number of Glanbia plc shares held by the Society will reduce from 121.9m (41.2% of Glanbia plc issued shares) to 107.9m (36.5% of Glanbia issued shares).
Under current agreements the composition of the Board of Glanbia plc will reduce from 14 nominees from the Society to 10 nominees in 2016 and eight in 2018. Following the approval of these proposals today the Society’s representation on the Board of Glanbia plc will reduce by one further nominee by 2020, bringing the number of Society nominees on the board of Glanbia plc to seven.