Glanbia Co-operative Society members have resoundingly approved a €224 million share spin-out and sale at a confirmatory Special General Meeting held in Gowran, Co Kilkenny.
Approval was obtained from 82.16% of A1 and A4 members, 78.95% of active milk suppliers and 83.35% of A1, A2 and A4 members. Following the share spin-out and sale, the Society will hold a 41.4% stake in Glanbia plc worth over €920 million.
The result of the ballot, conducted independently by the Irish Co-operative Organisation Society, was announced after 4,522 farmers cast their votes. A second resolution designed to preserve long standing arrangements within the rules was also approved by members – with 78.5% of A1 and A4 members approving this resolution.
The Society currently owns 51.4% of Glanbia plc. Following the vote, the Society will proceed with the placing of 3% of the issued share capital of the plc. The share spin out of 7% of the issued share capital of the plc to members is expected to be completed in March 2013, enabling members to either hold or sell these plc shares depending on their individual circumstances.
Commenting, Chairman, Liam Herlihy said, “Today’s vote concludes an historic and transformative process for the Society and its members. Members will directly hold €157m of value in Glanbia plc and the Society has the benefit of having cash resources, a 60% direct stake in a world class dairy business and 41.4% of Glanbia plc. This is a fitting return for members’ investment over many years and for their unprecedented commitment, goodwill and support during this approval process.”