Glanbia Co-op Members to Benefit From €92 Million Share Spin-out
Glanbia Co-operative Society has transferred, via a ‘spin-out’, about €92 million worth of shares in Glanbia, the global nutrition group, to over 14,700 members across its Irish catchment area. The transaction is aimed at releasing a portion of the value of Glanbia Co-op and making it available to members at a time of significant investment on their farms.
Glanbia Co-op also owns 60% of Glanbia Ireland, a joint venture owned 60% by Glanbia Co-op and 40% by Glanbia plc. Glanbia Ireland is a large scale, growing enterprise comprising Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness.
The spin-out and the formation of the Glanbia Ireland joint venture were among a number of measures overwhelmingly approved by the eligible members of Glanbia Co-op at a Special General Meeting held on 18 May 2017.
On receipt of their Glanbia plc share certificates, shareholders can choose to sell or retain the shares as they see fit. Since 2013, Glanbia Co-op has distributed in excess of €680 million of value to members through a combination of Glanbia plc share spin-outs, patronage support and share interest (dividends).
Henry Corbally.
Henry Corbally, chairman of Glanbia Co-operative Society, comments: “In addition to the share spin-out, members approved the creation of Glanbia Ireland through the acquisition of 60% of Dairy Ireland (Agribusiness and Consumer Products). The creation of Glanbia Ireland enables the integration of three strong, well-invested Irish based businesses to create value for all stakeholders. Specifically, it will help to maximise the opportunities created by a forecasted 30% growth in milk supply by Glanbia’s Irish milk suppliers to 2020.”
Glanbia Ireland will processes a 2.4 billion litre milk pool from 21 counties and export high quality dairy and agri ingredients as well as branded products to over 60 countries. With annual revenue of €1.5 billion, Glanbia Ireland operates 11 processing plants, 53 agri branches and employs over 1,800 people.
As a result of the spin-out, the acquisition of 60% of Dairy Ireland and the creation of a €40 million member support fund, Glanbia Co-op’s ownership of Glanbia plc has reduced from 36.5% to 31.5% of Glanbia plc. Glanbia Co-op will remain the largest shareholder in Glanbia plc on completion of the spin-out, with a holding valued at approximately €1.5 billion
