FDBusiness.com

The board of Glanbia Co-operative Society has announced a range of proposals which, if approved by members, will result in approximately €238 million of value being made available to all members. The proposals are aimed at releasing a portion of the value of the Society and making it available to members at a time of significant expansion and investment in the Irish dairy industry.

The proposals include the transfer, via a share spin out, of 10 million Glanbia plc shares, valued at approximately €170 million, to all existing Members of the Society. The Society will also create a €68 million Members’ Support Fund through the sale of 4 million Glanbia plc shares.

An additional objective of the proposals announced is to strengthen the current relationship between Society shareholding and milk supply. This will be achieved by facilitating the application by milk suppliers to the Glanbia Group to become members of the Society through the issuing of up to 3 million new shares in the Society. Other suppliers who meet the qualifying criteria may also apply for membership through this initiative. The Society will also initiate a share buy back plan to purchase up to 3 million existing shares from current members thereby facilitating a voluntary sale mechanism for members who wish to participate in this plan.

These proposals by the board of the Society are subject to member approval and will be voted on by eligible members at a Special General Meeting (SGM) of the Society which is scheduled to take place in mid May 2015.

Liam Herlihy, Chairman of Glanbia Co-operative Society, says: “The board of the Society is making these proposals in the context of a period of unprecedented change in the Irish dairy sector. The Society is in a very strong position, owning 60% of Glanbia Ingredients Ireland, the country’s leading and most progressive dairy processor, as well as a further €2 billion of assets through its shareholding in Glanbia plc. Many of our members are in a period of expansion and the board believes this is an appropriate time to make some of the value that has been built up in the Society available to those members to provide resources to support growth. It is also an opportunity to give value back to our loyal members who have built up the society over many years.”

If these proposals are approved by members, the number of Glanbia plc shares held by the Society will reduce from 121.9 million (41.2% of Glanbia plc issued shares) to 107.9 million (36.5% of Glanbia plc issued shares). The Society Board will also retain the discretion to reduce the Society’s holding in Glanbia plc to 33%.