Thursday, March 14 16:35:04
Shareholders at Co-operative Society are set to receive a windfall worth an average of E11,000 after it spun-out 7pc of the issued share capital of Glanbia plc for the benefit of its 16,200 members.
The E172 million share spin-out (based on E8.385 closing share price yesterday) is another key stage in concluding what is a historic and transformative process, following which the Society retains a 41.3pc shareholding in the plc, valued at E1 billion and 60pc ownership of a world class dairy business, Glanbia Ingredients Ireland.
Commenting, Society Chairman, Liam Herlihy, said: "Last November and December members voted overwhelmingly for this share spin-out and for a transformative structure to build on milk expansion opportunities post 2015. Today's decision to effect the formal distribution of the plc shares concludes this part of the process and the final stage will complete when the share certificates are issued to members by the end of March 2013. This spin out leaves the Society and its members ideally positioned for further growth. It is entirely fitting that members directly and personally receive E172 million of value that they helped create - with the choice to participate directly in the future of the plc by holding their plc shares or to realise value by selling some or all of them." As part of the spin-out process a proportion of each member's shares in the Society were cancelled on a pro rata basis, so that there is no change in each member's percentage shareholding in the Society. Prior to posting the share certificates, the Society will write to members with comprehensive information on the spin-out, including member-specific information.