14 Nov 2012
BRYAN WELCOMES STRONG VOTE FOR GLANBIA JV PLANDairy
IFA President John Bryan today (Wed) has welcomed the strong turnout of 77% and the decision by Glanbia Co-op shareholders to set up the new Glanbia Ingredients Ireland (GII) Joint Venture. He said, “The positive result, with 71% in favour, reflects my view, and that of our Association, that the proposal was balanced and fair”.
“The debate on the GII proposal, while intense, is now over. We must all respect the genuinely-held and differing points of views. However, democracy has spoken and all farmers should now unite and support the second proposal”.
John Bryan said the establishment of GII clears the way for further consolidation in the sector, and the opportunity must be grasped.
He said, “By voting yes again at the next two co-op SGMs, and securing over 75% support, farmers will ensure that all shareholders can benefit fairly by unlocking some of their historical investment in the co-op in a share spin out. They will also eliminate the co-op’s debt and allow it to build a cash reserve from the future dividend income from the Plc, which can be used for the benefit of all shareholders. Finally, by generating additional equity from share sales, they will further improve the financial outlook of GII,” he said.
IFA National Dairy Committee Chairman Kevin Kiersey said: “Glanbia shareholders must be commended today. By voting yes to GII, they have wisely helped secure greater farmer control of dairy processing and provided for additional processing capacity in advance of the post-quota expansion, while taking on a minimal burden of debt”.
Mr Bryan and Mr Kiersey concluded: “Now that the first phase of the proposal is decided on, we urge all shareholders to reflect on the benefits and fairness of the second part of the deal, and to come out and vote at the end of the month. We recommend a strong ‘yes’ vote on the second set of proposals”.