Glanbia Co-op completes share placement for creation of Glanbia Ireland
The shares, equivalent to approximately 3% of Glanbia plc’s issued share capital, were sold at a price of €17.80 ($20.04) per share.
The share placement follows the decision last week by 93% of Glanbia Co-op shareholders to approve the acquisition of 60% of Dairy Ireland from Glanbia plc and the creation of a new joint venture to be known as Glanbia Ireland.
In February, Glanbia Co-op agreed to pay €112m ($126m) to acquire a 60% 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 approved by Glanbia plc’s independent shareholders at an extraordinary general meeting Monday.
The transaction is expected to close on July 2, 2017.
Glanbia Ireland will be a new joint venture combining Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness, 60% owned by Glanbia Co-op and 40% owned by Glanbia plc.
The funds raised by Glanbia Co-op from the share placement will finance the acquisition of 60% 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% of the issued share capital of Glanbia plc.
Glanbia Ireland details
Glanbia Ireland will have a 2.4bn liter milk pool, revenue of €1.5bn, 11 processing plants, 53 agri branches and more than 1,800 employees.
Glanbia Ireland will include brands such as Avonmore, GAIN Animal Nutrition, Kilmeaden Cheese, Premier Milk, mymilkman.ie and Wexford.