Glanbia Co-op complete placement of PLC shares

Glanbia Co-op will raise approximately €155 million from the placement of 8.7 million plc shares.

Glanbia Co-operative Society (Glanbia Co-op) today announced that it has completed the placement of 8.7 million ordinary shares in Glanbia plc (equivalent to approximately 3% of Glanbia plc’s issued share capital) at a price of €17.80 per share. The share placement will raise approximately €155 million for Glanbia Co-op.

The share placement follows the decision taken last week by 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. As originally announced on 22 February 2017, Glanbia Co-op has agreed to pay €112 million 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 also approved by Glanbia plc’s Independent Shareholders at an Extraordinary General Meeting (EGM) this morning (Monday 22 May) at Lyrath Estate Hotel, Co. Kilkenny. This transaction is expected to close on 2nd July 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 today’s 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.

In addition, Glanbia Co-op shareholders voted last week to distribute by way of “spin-out” c.5.9 million shares in Glanbia plc to all members of the Co-op, equivalent to 2% of Glanbia plc’s issued share capital. This process will be completed later this year.

On completion of both the placement and the “spin-out”, Glanbia Co-op’s holding in Glanbia plc will be 31.5% of the issued share capital.

GLANBIA IRELAND

Glanbia Ireland will be a world class, ambitious, integrated agri-food business, with a diverse portfolio of quality ingredients, leading agri and consumer brands, with the proven talent to succeed in the global market.

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.

Glanbia Ireland will be an enterprise of scale, with a 2.4 billion litre milk pool, revenue of €1.5 billion, 11 processing plants, 53 agri branches and over 1,800 employees.

Glanbia Ireland will own leading consumer and agri brands such as Avonmore, GAIN Animal Nutrition, Kilmeaden Cheese, Premier Milk, mymilkman.ie and Wexford.

GLANBIA CO-OP SHAREHOLDERS VOTE TO CREATE GLANBIA IRELAND

On Thursday 18th May 2017 Glanbia Co-operative Society (Glanbia Co-op) announced that its shareholders have voted overwhelmingly in favour of a range of proposals including the establishment of a joint venture to be known as Glanbia Ireland.

  • Almost 2,400 Co-op shareholders voted on a series of proposals at a Special General Meeting of Glanbia Co-op in Punchestown Event Centre, Co Kildare
  • Glanbia Co-op shareholders voted overwhelmingly in favour of proposals to establish a joint venture to be known as Glanbia Ireland (93% in favour)
  • Glanbia Ireland will be a new strategic joint venture 60% owned by Glanbia Co-op and 40% owned by Glanbia plc
  • Glanbia Co-op shareholders also voted in favour of proposals to “spin-out” €100m* worth of Glanbia plc shares and the allocation of €40m to Member Support
  • The creation of Glanbia Ireland was also approved by Glanbia plc’s independent shareholders at an Extraordinary General Meeting (EGM) on Monday 22nd May

* The value of the “spin-out” is an estimated €100 million based on the Glanbia plc closing share price of €17.13 on Friday 17 February 2017.

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