Tirlán Co-op shareholders have voted overwhelmingly in favour of a proposal to change the rules of the society to give more flexibility to manage its financial investments on behalf of members.
The result at today’s special general meeting (SGM) was in excess of 80% in favour of this proposal.
The meeting took place online in a virtual format as permitted under the co-op’s rules, with 3,224 members voting, and was supervised by the Irish Co-operative Organisation Society (ICOS).
The resolution was to remove Rule 4h)ii which sets out that the Tirlán Board cannot reduce the co-op’s shareholding in Glanbia plc below 17%.
Following today’s vote, the rules will change to allow the board of the co-op greater flexibility in managing its investment in Glanbia plc.
The resolution was approved by 80% of A1/A4 members and by 77.5 % of A1 active milk suppliers.
Tirlán Co-op today holds a 28.9% shareholding in Glanbia plc, which is valued at more than €1.1 billion.
The positive vote will facilitate the release of approximately €222m (based on the Glanbia plc closing share price of €14.86 on October 4, 2024) of value to members through a spin-out of 15m Glanbia plc shares, which will take place as early as possible in 2025.
After the result was announced, John Murphy, chair of Tirlán Co-op, said: “This is a transformational outcome for our co-op.
“Today’s positive vote will provide our ambitious co-op with greater flexibility to better manage our financial investments.
“The core aim of today’s resolution is to drive farm family income, secure the future for this generation and, equally importantly, ensure we have a strong co-op for the next generation.
“Tirlán Co-op has constantly evolved for over 100 years and today stands as a financially strong, innovative co-operative whose award-winning brands and ingredient solutions are enjoyed by consumers in 100 countries across the world.
Murphy said: “This year, in particular, has been a difficult year on farms and it is important for our co-op to support our farmers through challenging times.
“This spin-out will distribute a portion of the wealth of the co-op to all our members in 2025. It will take our total spin-outs to close to €1 billion over the past 12 years. That is an extraordinary transfer of wealth to our farm families.”
“The strength of our Co-op today is a direct consequence of the decisions taken and support provided to the Tirlán Board over the years. The decision taken here today is another step change for our co-operative in its evolution,” he added.
Speaking about the results, Tirlán chief executive officer, Seán Molloy, said: “Today’s vote allows the board of Tirlán co-op the flexibility to manage its financial investments through our best-in-class investment governance structure and our committed and capable workforce.
“It will equip us to build greater resilience and empower our co-op to target the best possible returns for all members.
Tirlán Co-op continues to remain a steadfast supporter of Glanbia plc and today’s decision will allow us more flexibility to manage our financial assets over the longer term for the benefit of our members,” Molloy said.