Following today’s Glanbia Co-op’s Special General Meeting in advance of the shareholders’ and milk suppliers’ vote, IFA President John Bryan welcomed the decision made by both Glanbia shareholders and milk suppliers to overwhelmingly support the resolution to sell and spin out further Plc shares.
He said the positive vote will strengthen the financial outlook of the new GII Joint Venture, eliminate the debt of the Co-op, and would allow all shareholders benefit from a share spin out worth in excess of €150m.
“I believe this decision by Glanbia shareholders will considerably strengthen the financial outlook of the new GII. It will also strengthen the Plc by allowing it to focus on lucrative international nutrition markets, benefiting the Co-op which retains a sizeable 41% dividend earning and controlling share,” he said.
IFA National Dairy Chairman Kevin Kiersey, who also strongly supported a ‘yes’ vote, said: “The formation of GII represents a significant development for Glanbia farmers. However, it is only a first step, and it should be built upon to increase industry collaboration as we move towards 2015. I urge GII, and other processors, especially neighbouring co-ops, to engage fully in detailed planning to foster greater efficiencies and integration for the benefit of the entire sector, and milk prices to producers,” he concluded.