Green Pages Feed Trade Topics from the Island of Ireland
GLANBIA CO-OP TO FORM NEW JOINT VENTURE WITH GLANBIA PLC Glanbia Co-operative Society (Glanbia Co-op) has announced that it has signed a binding legal agreement with Glanbia plc to establish a new joint venture to be known as Glanbia Ireland. Glanbia Co-op proposes to pay €112 million to acquire a 60%
shareholding in the plc’s Dairy Ireland division, which consists of Glanbia Consumer Products and Glanbia Agribusiness. Glanbia Ireland will combine Glanbia Ingredients Ireland,
Glanbia Consumer Products and Glanbia Agribusiness, as a joint venture: 60% owned by the Co-op and 40% owned by the plc. This builds on the successful Glanbia Ingredients Ireland (GII) joint venture established in 2012. Glanbia Co-op has also confirmed proposals to distribute by way
of “Spin-out” c.5.9 million shares in Glanbia plc to all members of the Co-op and to create a €40 million Member Support Fund. The value of the share “Spin-out” is an estimated €100 million based on the Glanbia plc closing share price of €17.13 on Friday 17th February 2017. This would be worth approximately €6,637 for a member with the average shareholding. For active dairy farmer members, the average value of the spin-out would be €10,791. Subject to member approval, the Board of Glanbia Co-op
proposes to allocate up to €40 million of its resources to a Member Support Fund. This will be 50% funded through the sale of Glanbia plc shares with the balance from Co-op resources. Payments from the fund will be in the proportion of 75%
patronage to active members and 25% Special Dividend to all Members, with the nature and timing of any payments at the discretion of the Glanbia Co-op Board. If the proposed transaction is approved by members, Glanbia
Co-op will fund the acquisition of 60% of Dairy Ireland and part fund the €40m Member Support Fund through the sale of c.8.9 million Glanbia plc shares (equal to 3% of the issued share capital of the plc).
Today the co-op holds 36.5% of the issued shares in Glanbia
plc. If all of the proposals above are approved the Co-op would own 31.5% of the issued share capital in Glanbia plc. These proposals by the Board of the Co-op are subject to
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Member approval and will be voted on by eligible Members at a Special General Meeting (SGM) of the Co-op which will take place at Punchestown Event Centre on Thursday, May 18. The Chairman of Glanbia Co-op Henry Corbally said: “The proposed creation of Glanbia Ireland is an exciting
development for Glanbia farmers. It brings the strong portfolio of Glanbia’s Irish dairy and agribusiness assets into majority Co-op ownership while building on the strong partnership with Glanbia plc. I would encourage all members to familiarize themselves with these proposals and to attend our SGM in Punchestown Event Centre on 18 May.”
Siobhán Talbot, Group Managing Director of Glanbia said: “Having established GII and successfully managed the transition
to a post milk quota environment there is a compelling rationale to combine the Irish businesses and supply chain to create efficiencies and scale. As a top 10 dairy company in Europe, exporting to over 60 countries, Glanbia Ireland would have the scale to invest in innovation and growth on a standalone basis.” “GII suppliers plan to supply 30% more milk in 2020 than in 2016.
The financial strength of the Glanbia Ireland business will allow it to fund a €250 - €300 million investment programme to 2020 without a requirement for supplier contributions”.
IFA TO PUSH FOR BREXIT TRIPLE SAFETY LOCK The IFA’s Brexit policy will be underpinned by three core themes: the maintenance of the closest possible trading relationship between the EU and the UK; the value of the UK market to be maintained; and the securing of a fully funded CAP. This was the core message delivered by IFA President at the organisation’s recent Brexit conference. He added: “Farming and food generates economic activity in every parish,
village and town across Ireland, supporting 300,000 jobs directly and indirectly. That’s what’s at stake in the Brexit negotiations.” Healy said that Ireland is the most exposed EU member state, where Brexit is concerned. “And the stakes are highest in our farming and food sectors.
Approximately 40%, or €4bn of our exports go to the UK each year: that’s 50% of our beef, one third of our dairy, over half of our pigmeat
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