Big windfall on the way for 15,500 Glanbia members
Published 19/05/2015 | 00:00
farmers who remained as members of the Glanbia Co-operative Society Limited are to benefit from a huge windfall after voting overwhelmingly in favour of a package of proposals which will result in approximately €238 million of value coming to them.
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 from the Board of the Society 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 four million Glanbia plc shares.
An additional objective of these proposals is to strengthen the current relationship between suppliers and Society shareholding with the issuing of shares to facilitate new member applications. The Society will also initiate a Share Buy Back Plan to purchase up to three million existing shares from current Members thereby facilitating a voluntary sale mechanism for Members who wish to participate in this plan.
These proposals were approved by the eligible members of Glanbia Co-operative Society at a Special General Meeting (SGM) of the Society held last week at Gowran Park Racecourse, Co Kilkenny.
Liam Herlihy, Chair of Glanbia Co-operative Society said the proposals were made at a time of unprecedented change in the Irish dairy sector.
'Many of our members are in a period of expansion and they clearly felt that this is an appropriate time to make some of the value that has been built up in the Society available to members which will give them both security and resources for growth. It is equally an opportunity to recognise the members who have built up the Society over many years. The Society intends to distribute (Spin Out) 10 million Glanbia plc shares to over 15,500 individual Society members.