Shareholders at Greencore have backed the Irish food group’s plans to sell its US business for over $1 billion, according to The Irish Independent.
This was confirmed at a shareholder meeting which took place today, however, around 20% disagreed with how the company planned to return some of the money to shareholders.
Greencore plans to distribute the bulk of the proceeds as a special dividend, which will incur income tax for shareholders.
Many of the smaller shareholders complained about the tax implications of Greencore’s proposed plans and asked it to consider more tax-efficient measures.
After the meeting, CEO Patrick Coveney told reporters that how money is given out could change.
One of Greencore’s investors, Polaris Capital, who owns an approximate 9% stake in the company, went public last week warning the company of such tax implications, and recommended a share buyback instead.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.