The €307 million purchase by Glanbia Co-op of Glanbia Ireland has been approved with shareholders voting overwhelmingly in favour of the proposal at today’s (Friday, December 17) special general meeting (SGM).
The proposed transaction will be subject to approval by Glanbia plc’s independent shareholders via an extraordinary general meeting (EGM) in early 2022.
But following today’s SGM, the co-op is set to become 100% owned by farmer shareholders.
Just under 4,000 shareholders voted at the SGM today, with Glanbia Co-op chairman, John Murphy announcing that all proposals passed by a majority of more than 80%.
Six resolutions were voted on, in stages, over the course of three and a half hours.
The main item up for consideration was the €307 million transaction – that will now proceed – to see the co-op take full ownership of Glanbia Ireland (GI) through purchasing Glanbia plc’s 40% share.
In addition, shareholders voted in favour of a spin-out of €149 million worth of Glanbia plc shares; they approved the creation of an investment fund; they gave the green light to a 2022 member distribution reserve; and approved changes to the governance of the co-op.
Commenting on the result, the co-op chairman, John Murphy said:
“The board’s motivation for making these proposals was very simple – we want to pay the best possible price for milk and grain to farmers.
“These proposals allow us greater flexibility to support our farmers into the future. Most importantly, our co-op will have 100% ownership of our processing facilities and will be run to pure co-op principles.
“It will maintain strong financial discipline and governance, and be led by an experienced leadership team and board.
Jim Bergin, CEO of Glanbia Co-op and Glanbia Ireland, said:
“We have a very strong business in Glanbia Ireland, with over €2 billion of revenue, strong market positions and an excellent workforce. Our network of facilities is world-class with over €559 million invested since 2012.
“A number of the world’s leading processors are co-ops and it is a model that has been shown to deliver for farmers.
“We believe that 100% co-op ownership of the processing facilities is the optimal business structure for the next the next phase of our evolution. We are entering a period where there will be increased focus on both sustainability and value-add.”