Glanbia Co-op announces €92 million share spin-out

The co-op says the move completes a series of plans which also includes the creation of a joint venture with the plc

Glanbia Co-operative Society has transferred around €92m worth of Glanbia plc shares to over 14,700 members.

The dairy co-op is the biggest shareholder in the plc, having bought its Irish dairy and agri-business division in 2010.

Following the completion of the spin-out, Glanbia Co-op will remain the largest individual shareholder in Glanbia plc, with 31.5% of the issued share capital.

This shareholding was valued at approximately €1.5bn based on the plc closing share price of €15.71 on 31 August 2017.

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, said the society in a statement.

Glanbia Co-op also owns 60% of Glanbia Ireland, a joint venture with Glanbia plc, which owns 40%. Glanbia Ireland is a large-scale 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 on 18 May 2017.

A detailed information pack, including details of their individual plc share allocations, will be issued to Co-op members in mid-September.

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 says it has distributed in excess of €680m of value to members through a combination of Glanbia plc share spin-outs, patronage support and share interest (dividends).

Chairman Henry Corbally said: “The completion of the spin-out process represents the substantial completion of a wide ranging set of proposals.

“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.”

 

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