Glanbia Co-op members get €92m share windfall

By Jim Cornall contact

- Last updated on GMT

Irish cooperative Glanbia is releasing funds to its members through a spin off of 5.9m plc shares.
Irish cooperative Glanbia is releasing funds to its members through a spin off of 5.9m plc shares.

Related tags: Glanbia plc, Stock market

Glanbia Co-operative Society Limited said it has transferred, via a “spin-out,” around €92m ($109m) worth of Glanbia plc shares to more than 14,700 members.

The spin-out of approximately 5.9m plc shares has a total value of approximately €92m based on the plc share price of €15.71 ($18.66) at the close of business on August 31, 2017.

The Irish cooperative said the transaction is aimed at releasing a portion of the value of Glanbia Co-op and making it available to members at a time of significant investment on their farms.

Following its completion, Glanbia Co-op will remain the largest individual shareholder in Glanbia plc, with 31.5% of the issued share capital, a decrease of 5%. This shareholding was valued at approximately €1.5bn ($1.78bn) based on the plc closing share price on August 31, 2017.

Co-op share cancellation

Glanbia Co-op also owns 60% of Glanbia Ireland, a joint venture owned 60% by Glanbia Co-op and 40% by Glanbia plc. Glanbia Ireland consists of Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness.

An information pack, including details of individual share allocations, will be issued to co-op members in mid-September. On receipt of their Glanbia plc share certificates, shareholders can sell or retain the shares.

As an example, a member with 2,000 co-op existing shares will receive 305 plc shares, with a value of €4,791.55 ($5,692). As a result, 87 co-op shares would be cancelled, reducing the number of co-op shares to 1,913.

A spokesperson for Glanbia told DairyReporter that, in effect, the spin-out involves swopping a certain number of Glanbia co-op shares and replacing them with Glanbia plc shares, hence the cancellation.

The value of shares received, however, is not affected by cancellation of the co-op shares.

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