Glanbia chairman Henry Corbally
Glanbia Co-operative Society (Glanbia Co-op) has announced that it has completed the placement of 8.7 million ordinary shares in Glanbia plc (equivalent to approximately 3 per cent of Glanbia plc’s issued share capital) at a price of €17.80 per share.
The share placement will raise approximately €155m for Glanbia Co-op.
The share placement follows the decision taken last week by Glanbia Co-op shareholders to approve the acquisition of 60 per cent of Dairy Ireland from Glanbia plc and the creation of a new joint venture to be known as Glanbia Ireland.
As originally announced on February 22, 2017, Glanbia Co-op has agreed to pay €112m to acquire a 60 per cent shareholding in Glanbia plc’s Dairy Ireland division, which consists of Glanbia Consumer Products and Glanbia Agribusiness.
The proposed transaction and the creation of Glanbia Ireland were also approved by Glanbia plc’s Independent Shareholders at an Extraordinary General Meeting (EGM) on Monday, May 22, at Lyrath Estate Hotel, County Kilkenny. This transaction is expected to close on July 2.
Glanbia Ireland will be a new joint venture combining Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness, 60 per cent owned by Glanbia Co-op and 40 per cent owned by Glanbia plc.
The funds raised by Glanbia Co-op from the share placement will finance the acquisition of 60 per cent of Dairy Ireland and fund €40m in support for members of the co-op.
Once the placement is complete the co-op will hold approximately 33.5 per cent of the issued share capital of Glanbia plc.
In addition, Glanbia Co-op shareholders voted last week to distribute by way of “spin-out” c.5.9 million shares in Glanbia plc to all members of the co-op, equivalent to 2 per cent of Glanbia plc’s issued share capital. This process will be completed later this year.
On completion of both the placement and the “spin-out”, Glanbia Co-op’s holding in Glanbia plc will be 31.5 per cent of the issued share capital.