Glanbia special dividend payment now complete

Glanbia Co-operative Society Limited has completed the distribution of a 25c per share special dividend to all members.

The payment of €10.1 million is part of the proceeds of the €67.4m Member Support Fund raised by Glanbia Co-operative in May last year through the sale of four million shares in Glanbia plc.

According to Glanbia Co-operative chairman, Henry Corbally,  when the Co-operative had created the Members Support Fund in 2015 it had committed to paying 25% of the Fund as a special dividend to all shareholders.

“Glanbia Co-operative Society has a clear strategy that delivers value creation, by supporting our investments in Glanbia plc and Glanbia Ingredients Ireland, and value distribution, through support for members and a progressive dividend policy,” said Corbally.

This special dividend to all shareholders is in addition to the ordinary dividend of 10c per share that was approved at the Annual General Meeting on 5 May.

Glanbia is planning to make the 10c per share payment to members in July 2016.

According to Glanbia, the 25c per share special dividend was made directly to the bank accounts of Co-operative members that have provided banking details.

Society members who have not provided banking details to the Society and wish to avail of this and any other outstanding payments should contact the Society Shares Office (058-22241 or email [email protected]).

In March of this year, Glanbia, along with a number of partners, launched plans for a new €100m ‘Glanbia MilkFlex Fund’.

It said the fund will offer flexible, competitively-priced loans to Glanbia milk suppliers with loan repayments that can vary according to movements in milk price.

Glanbia Co-operative Society teamed-up with the Ireland Strategic Investment Fund, Rabobank and Finance Ireland on the initiative.

A key feature of the loan product is that it will have inbuilt ‘flex triggers’ that can adjust the repayment terms in line with movements in Glanbia Ingredients Ireland’s manufacturing milk price, thereby providing farmers with cash flow relief when most needed.

Subject to underwriting criteria, the interest rate charged on the loans will be a variable rate of 3.75% above the monthly Euribor cost of funds (with a Euribor floor of zero).

In November, Glanbia Ingredients Ireland launched a new Fixed Milk and Feed Price Scheme with a base of 30.25c/L (including VAT) at reference milk constituents of 3.6% butterfat and 3.3% protein.

It said the voluntary Scheme will run for 18 months from January 2016 until mid-2017.