Kerry Co-op has sold €77 million worth of its shares in Kerry Group in order to fund a share redemption scheme for shareholders.
This is the fifth redemption scheme the co-op has undertaken. In order to fund it, around 665,000 shares were sold last week.
The shares were sold ‘off-market’, whereby – instead of being sold on the open market during regular stock trading (which would see relatively small numbers of shares changing hands) – larger blocks of shares are sold to larger buyers more directly.
The transaction took place last week. As a result, the co-op’s shares in Kerry Group now stand at around 11.8%.
This latest co-op share redemption scheme has around 1,200 applicants – in line with previous schemes the co-op has operated.
The pay-out for each share under the redemption scheme is higher than the market value of the shares. It is understood that, under this redemption scheme, shares were ‘cashed-in’ for between €600 and €700.
Applicants to the redemption scheme are supposed to receive payment by July 23, though it is expected that the pay-out will come earlier than that – perhaps as early as next week.
Kerry Co-op SGM
In other Kerry Co-op news, the co-op is planning to hold a ‘Special General Meeting’ (SGM) on the possibility of changing some of its rules.
Sources have indicated to Agriland that the meeting is being scheduled for August.
The news comes as Kerry Co-op held its AGM on Tuesday of last week.
It is understood that recent issues in relation to Kerry Co-op that have generated significant coverage – including a potential purchase by the co-op of Kerry Group’s dairy related businesses – did not come up for discussion at the AGM.
It is understood that this issue will come up for wider discussion at the SGM.