Glanbia Co-op has confirmed that it has spun-out 7% of the issued share capital of Glanbia Plc to its 16,200 members. The €172 million share spin-out (based on €8.385 closing share price on Wednesday, March 13), with farmers getting an average of €20,000 each, is another key stage in concluding what is a historic and transformative process, following which the society retains a 41.3% shareholding in the plc, valued at €1 billion and 60% ownership of a world class dairy business, Glanbia Ingredients Ireland Limited.
Glanbia Chairman, Liam Herlihy, said that last November and December members voted overwhelmingly for the share spin-out and for a transformative structure to build on milk expansion opportunities post 2015.
“Today’s decision to effect the formal distribution of the plc shares concludes this part of the process and the final stage will complete when all the share certificates are issued to members by the end of March. This spin-out leaves the society and its members ideally positioned for further growth. It is entirely fitting that members directly and personally receive €172 million of value that they helped create – with the choice to participate directly in the future of the plc by holding their plc shares or to realise value by selling some or all of them,” the Waterford farmer said.
As part of the spin-out process a proportion of each member’s shares in the society were cancelled on a pro rata basis, so that there is no change in each member’s percentage shareholding in the society. Prior to posting the share certificates, the society wrote e to members with comprehensive information on the spin-out, including member-specific information.