Irish dairy co-ops may be in line for a €100m cash boost following the announcement that One51 is hoping to float on the stock market in the next 12 to 18 months.
Co-ops hold a 25% stake, valued at €75m today, in the plastics company that was originally spun out from IAWS.
Until now, the co-op’s investment was only tradable on the unregulated grey stock market, which would make it difficult for them to cash in their shares.
However, if the flotation finally gets the go-ahead from One51 shareholders, it could see the co-ops exiting to recoup almost all of their original €78m investment.
It is expected that co-ops will cash in their shares, in some cases to fund expansion and pay down debt. Some of the biggest co-op shareholders include Kerry (5%), Dairygold (3%) and Lakeland (3%).
Recent deals struck by other shareholders, including financier Dermot Desmond, are rumoured to be for a price of 33% more than the current share price of €1.85.
If the share price were to reach these levels on the stock market, the co-ops would net €100m. It would give the co-ops back their original investment, along with a €20m profit after almost a decade.
Irish dairy co-ops may be in line for a €100m cash boost following the announcement that One51 is hoping to float on the stock market in the next 12 to 18 months.
Co-ops hold a 25% stake, valued at €75m today, in the plastics company that was originally spun out from IAWS.
Until now, the co-op’s investment was only tradable on the unregulated grey stock market, which would make it difficult for them to cash in their shares.
However, if the flotation finally gets the go-ahead from One51 shareholders, it could see the co-ops exiting to recoup almost all of their original €78m investment.
It is expected that co-ops will cash in their shares, in some cases to fund expansion and pay down debt. Some of the biggest co-op shareholders include Kerry (5%), Dairygold (3%) and Lakeland (3%).
Recent deals struck by other shareholders, including financier Dermot Desmond, are rumoured to be for a price of 33% more than the current share price of €1.85.
If the share price were to reach these levels on the stock market, the co-ops would net €100m. It would give the co-ops back their original investment, along with a €20m profit after almost a decade.
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