Kerry Co-op share scheme can proceed without shareholder backing
Kerry Co-op’s cash-for-shares scheme could be able to proceed even if shareholders reject the proposed Share Redemption Scheme at the co-op’s annual general meeting (AGM) tomorrow, June 19.
The board of the co-op are looking to change two rules that would facilitate the scheme going ahead. These rules will be voted on at the AGM.
However, Mundy Hayes, the co-op’s chairman, confirmed to AgriLand that the co-op would be able to proceed with the scheme even if shareholders reject the changes.
However, he does not envisage this happening, he stressed.
“Kerry shares are very valuable. No one who bought shares in the 1970s could envisage where things would go. Some people may be unaware of the value of shares they hold,” he argued.
He said this was particularly important for older members.
“Situations might arise for families when people pass away. For some of them, they don’t realise the value of the asset they’re sitting on,” he said, adding: “These people were investing in their future.”
He reiterated the board’s point that the proposed scheme “would not suit everybody”, but that other schemes were being looked at for the future, saying: “This is the first step.”