Tirlán has proposed a rule change to members which would facilitate the spin-out of 15 million shares in Glanbia plc to its members. The value of those shares, at today’s price is €239m.
According to a statement from Tirlán, this would be worth just over €7,000 for every 1,000 co-op shares that a farmer holds, or €24,604 to an average active co-op member.
It should be noted however, that those figures are based on a market price of €15.90 per Glanbia share.
That share price could be substantially different by the time the proposed spin-out happens. Tirlán envisages that, should members approve the proposal, that the spin out would happen in the second quarter of 2025.
Tirlán currently holds 75 million shares in Glanbia, accounting for a 29% stake in the company. The proposal would drop that share to around 23%. Since 2013, Tirlán (previously Glanbia Co-op) has spun out 48.6 million shares to its members.
John Murphy, chair of Tirlán Co-op said that under the rules of the society, it cannot reduce its shareholding in Glanbia plc below 17%. “At a forthcoming SGM [Special General Meeting] we will be seeking member approval to amend this Co-op rule.”
The proposal has the unanimous support of the board of the co-op who recommend it for approval at the forthcoming SGM.
Tirlán will hold a series of information meetings, both in person and online, for members to this month, with the first online on Wednesday 4 September.
Updated article to reflect the size of Tirlán’s current shareholding in Glanbia.
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