Glanbia's independent shareholders were due to meet in Kilkenny this Monday, May 22, to vote on whether or not to accept a proposal to establish a joint venture to eb known as Glanbia Ireland.
Glanbia Co-operative Society (Glanbia Co-op) shareholders voted overwhelmingly last week in favour of the proposal.
The result of the Special General Meeting (SGM) in Punchestown Event Centre on May 18 was 93.1 per cent in favour, with 6.9 per cent against.
Originally announced on February 22, 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 new joint venture will combine Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness as a joint venture 60 per cent owned by Glanbia Co-op and 40 per cent owned by Glanbia plc. This builds on the successful Glanbia Ingredients Ireland (GII) joint venture established in 2012.
In addition, Glanbia Co-op shareholders voted to distribute by way of “spin-out” circa 5.9 million shares in Glanbia plc to all members of the co-op. The value of the “spin-out” is an estimated €100m based on the Glanbia plc closing share price of 17.13 on Friday February 17, 2017. The shareholders of the co-op also voted to allocate up to €40m of its resources to Member Support.
Commenting on the result, the chairman of Glanbia Co-op Henry Corbally said: “I’m delighted that Glanbia members have voted overwhelmingly in favour of taking a majority stake in Glanbia’s consumer and agri businesses.
“I’m also very pleased that our members endorsed the proposals to distribute approximately €140m to all co-op members with a share 'spin out' and through Member Support.
“We’re all proud of what Glanbia has achieved in recent years and the decisions will ensure that the co-op is in a very strong position to face the future with confidence”.
In the event that Glanbia’s independent shareholders approve the proposed transaction, Glanbia Co-op will fund the acquisition of 60% of Dairy Ireland and part fund the €40m Member Support through the sale of circa 8.9 million Glanbia plc shares (equal to 3 per cent of the issued share capital of the plc).