Greencore Shareholders Approve Of US Sale, But Agaisnt Special Dividend

By Publications Checkout
Greencore Shareholders Approve Of US Sale, But Agaisnt Special Dividend

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.

Tax Fears

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.

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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. 

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