Dairygold Co-op has sold out its shareholding in the insurance company FBD Holdings plc.

The Munster-based dairy processor confirmed to the Irish Farmers Journal that it offloaded its shareholding in FBD Holdings in 2022, but it declined to outline the number of shares sold or the total value of the transaction. However, it is understood that Dairygold had in the region of 50,000 shares in FBD Holdings.

Given that the insurance company’s share price ranged from €7.60 to €11.30 last year, the sale of 50,000 shares could potentially have netted Dairygold between €380,000 and €565,000.

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A note in Dairygold’s annual report for 2022 detailed the FBD share sale.

“During 2022 the society’s FBD shareholding was sold and proceeds were re-invested in the diversified financial assets portfolio,” the annual report stated.

Queries

In response to queries from this newspaper, a co-op spokesperson said the decision to sell the FBD shares was taken as part of the overall management of the business’s investment portfolio.

“Dairygold had accumulated a portfolio of shares in a number of plcs, by virtue of its legacy shareholding in co-operatives that had listed on the stock exchange,” the spokesperson said

“A number of years ago, the decision was taken to engage Davy to manage the portfolio on the society’s behalf, with the strategy of moving away from directly held shares to diversified funds, thereby spreading the risk and maximising the value for the society and its members.

“In 2022 Dairygold sold its last tranche of directly held shares and reinvested in diversified funds. Now all of its portfolio is in diversified funds,” the spokesperson added.

According to Dairygold’s annual report, the total value of the co-op’s diversified portfolio fell by €3.5m to €31.8m in 2022.

Global equities

“The decrease in value is reflective of the general reduction in global equities during the year,” the report stated.

FBD Holdings’ share price peaked at €15 during March this year and the shares are currently trading for around €13.

At that €13/share value today, 50,000 shares would be worth €650,000.

FBD Holdings plc annual general meeting will take place today, Thursday 11 May.?

Meanwhile, the Irish Farmers Journal understands that Dairygold maintains its shareholding in the non-listed Farmer Business Developments.