A special general meeting (SGM) application of Wexford Milk Producers (WMP) has been rejected by the co-op’s board.
More than 50 WMP signed a written request for the SMG and it was proposed that the meeting would discuss Strathroy Dairy’s interest in purchasing Wexford Creamery.
The WMP’s board, however, ruled that since the co-op had agreed the sale of Wexford Creamery to Glanbia Ingredients Ireland Limited (GIIL), it would be a ‘breach of contract’ to enter discussions with another party.
Just last week Strathroy Dairy issued a seven-point guarantee to WMP, as the Co Tyrone-based milk processor strives to build momentum in its bid to secure the Wexford Creamery business. In recent weeks it has also signed new milk agreements with some 40 WMP.
In December WMP voted to sell their processing plants and milk pool to GIIL, 57 per cent in favour 43 per cent against by 326 co-op members. In total Glanbia has agreed to pay €20m, of which €3.7m is in cash. €3m is required to purchase the remaining 30 per cent of Wexford Creamery from Dairycrest.
The transaction is set for the Competition Authority and the deal is expected to close mid-February. In addition shareholders are set to sign-up to new milk supply agreements.