Glanbia Co-operative Society (Glanbia Co-op) has announced that it has completed the placement of 8.7 million ordinary shares in Glanbia plc at a price of €17.80 per share, which will raise approximately €155 million for Glanbia Co-op.
The share placement follows last week’s news that the Co-op shareholders approved the acquisition of 60% of Dairy Ireland from Glanbia plc, and the creation of a new joint venture to be known as Glanbia Ireland.
The proposed transaction, and creation of Glanbia Ireland, were also approved by Glanbia plc’s Independent Shareholders at an Extraordinary General Meeting (EGM) this morning, May 22, at Lyrath Estate Hotel, Co. Kilkenny. The transaction is expected to close on 2nd July 2017.
Glanbia Ireland will be comprised of Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness. It will be 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 Dairy Ireland acquisition, as well as 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. This process will be completed later this year.
© 2017 - Checkout Magazine by Aidan O'Sullivan