Glanbia plc begins €50 million share buy-back programme today

Glanbia plc has begun a share buy-back programme of up to €50 million in total value in Glanbia plc ordinary shares from today (Monday, November 9).

The purpose of the share buy-back programme is to reduce the share capital of the company, with any shares repurchased for this purpose cancelled, the Irish agri-business giant says.

The company has entered into an agreement with J&E Davy to act as principal in relation to the purchase of the company’s shares, within certain parameters.

The programme will run from today, November 9, 2020, through to the conclusion of the company’s next annual general meeting (AGM), expected to be held in April 2021, unless otherwise terminated in accordance with the company’s agreement with Davy, Glanbia says.

Under the terms of the agreement, Davy will make purchases of the shares under the buy-back programme independently.

The share buy-back programme will buy up to a maximum of 10% of the issued share capital of the company, it was added.

While this programme involves Glanbia plc only, with no co-op involvement, the move will be of obvious interest for farmers who are members of Glanbia Co-op.

Glanbia Co-op’s percentage shareholding in the plc will increase marginally from its current 31.5% level, due to the co-op holding a greater percentage of the reduced number of plc shares in issue.

However, it should be noted that this increase will be limited.

The plc says that “the buy-back of shares may not cause the percentage of the issued share capital of the company held by Glanbia Co-operative Society Limited and persons presumed to be acting in concert with it to exceed limits set out in Resolution 12 approved by the company’s independent shareholders at the 2020 AGM”.