Glanbia Co-op members benefit from share spin-out

Glanbia Co-operative Society Limited (“Glanbia Co-op”) confirms that it has transferred, via a “spin-out”, c.€92 million worth of Glanbia plc (“the plc”) shares to over 14,700 members.

The spin-out of approximately 5.9 million plc shares has a total value of c.€92 million based on the plc share price of €15.71 at the close of business on 31 August 2017. The transaction is aimed at releasing a portion of the value of Glanbia Co-op and making it available to members at a time of significant investment on their farms.

Following the completion of the spin-out, Glanbia Co-op will remain the largest individual shareholder in Glanbia plc, with 31.5% of the issued share capital. This shareholding was valued at approximately €1.5 billion based on the plc closing share price of €15.71 on 31 August 2017.

Glanbia Co-op also owns 60% of Glanbia Ireland, a joint venture owned 60% by Glanbia Co-op and 40% by Glanbia plc. Glanbia Ireland is a large scale, growing enterprise comprising Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness.

The spin-out and the formation of the Glanbia Ireland joint venture were among a number of measures overwhelmingly approved by the eligible members of Glanbia Co-op at a Special General Meeting held on 18 May 2017 at the Punchestown Event Centre.

A detailed information pack, including details of their individual plc share allocations, will be issued to Co-op members in mid-September. On receipt of their Glanbia plc share certificates, shareholders can choose to sell or retain the shares as they see fit. Since 2013, Glanbia Co-op has distributed in excess of €680 million* of value to members through a combination of Glanbia plc share spin-outs, patronage support and share interest (dividends).

Commenting, Henry Corbally, Chairman of Glanbia Co-operative Society said:

“The completion of the spin-out process represents the substantial completion of a wide ranging set of proposals which were overwhelmingly approved by eligible Glanbia Co-op members at the Special General Meeting held at the Punchestown Event Centre on 18 May 2017. “In addition to the share spin-out, members approved the creation of Glanbia Ireland through the acquisition of 60% of Dairy Ireland (Agribusiness and Consumer Products). The creation of Glanbia Ireland enables the integration of three strong, well-invested Irish based businesses to create value for all stakeholders. Specifically, it will help to maximise the opportunities created by a forecasted 30% growth in milk supply by Glanbia’s Irish milk suppliers to 2020.”

As a result of the spin-out, the acquisition of 60% of Dairy Ireland and the creation of a €40 million member support fund, Glanbia Co-op’s ownership of Glanbia plc has reduced from 36.5% to 31.5% of Glanbia plc. Glanbia Co-op will remain the largest shareholder in Glanbia plc on completion of the spin-out, with a holding valued at approximately €1.5 billion based on a share price of €15.71*.

*Based on Glanbia plc official closing share price of €15.71 on 31 August 2017.

BACKGROUND NOTE:

GLANBIA PLC

Glanbia plc is a global nutrition group. The company employs approximately 6,200 people in 32 countries and its products are sold or distributed in over 130 countries worldwide. It is headquartered in Kilkenny, Ireland and the company’s shares are listed on the Irish and London stock exchanges.

GLANBIA CO-OPERATIVE SOCIETY LIMITED

Glanbia Co-operative Society Limited is the largest individual shareholder in Glanbia plc, holding approximately 31.5% of the issued share capital of the company. It has over 14,700 members across its Irish catchment area.

GLANBIA IRELAND

Glanbia Ireland is a 60:40 joint venture between Glanbia Co-operative Society Limited and Glanbia plc. It is made up of Glanbia Ingredients Ireland, Glanbia Consumer Products and Glanbia Agribusiness.

First Published 01 September 2017