Liam Herlihy, the chairman iof Glanbia Co-op has sent the following letter to all shareholders in the co-op in advance of the meetings where members will be asked to vote for or againsta new joint venture with Glanbia Plc; a share spin out and a dimunition of its astake in the Plc:
“I am writing to you today to give you and fellow Society members an update on events since the announcements, on August 29, of our proposed Irish dairy processing Joint Venture with Glanbia plc and the separate but related share spin-out and sale of plc shares by the Society. It has been a
busy intervening period with a wide range of information and consultation meetings held by both the Society and the plc.
To date, we have met with the Council and all of the Regional and Area Committees. In addition, we have met with the main farmer representative organisations including the IFA, ICMSA, Macra and ICOS. Investors, employees and customers have also been briefed. The next step is a series of local member meetings which will be held in October, details of which have been sent separately to A1 and A2 members.
While there is still considerable and welcome dialogue to be undertaken before decisions are made and votes cast, the tone of the meetings to date has been constructive. The feedback on the proposals has been positive and they are being viewed as offering opportunity and choice to all stakeholders.
What is evident, however, is that there are a lot of elements for members to comprehend and to consider. In this document we have taken the opportunity to lay out the key information in a straightforward and transparent manner. This, your Board hopes, will aid understanding and add
clarity to the debate and I strongly recommend that you read it fully.
At their simplest level these proposals are about making choices: about the future direction of your Society; about how to secure direct control of growth in milk production; and about how to recognise and reward the commitment and loyalty of all members. Underlying these choices is your Board’s steadfast commitment to ensuring direct control for members of a profitable and sustainable business for dairy processing, in a new era of post quota growth.”