Glanbia Co-op announced last week that it had completed the sale of approximately 5.75m ordinary shares in Glanbia plc (equivalent to about 2% of Glanbia plc’s issued share capital) at a price of €12.25 per share.
In total, this sale will raise about €70m for Glanbia Co-op that will go towards the outright purchase of Glanbia Ireland. This means Glanbia Co-op now has reduced its holding in Glanbia plc from approximately 32.4% prior to the Christmas vote down to 30.5%.
In a separate deal, the co-op also announced that it has raised €250m through an equity-linked exchangeable bond. This means that instead of selling the shares and taking the cash, the co-op is borrowing on the back of the shareholding. Essentially, the co-op is using the security of the shares to get the loan.
The deal ties up approximately 15.1m Glanbia plc shares (5.3% of co-op shareholding).
The co-op retains the ownership of the shares until such time (if any) that an exchange is exercised in accordance with the terms and conditions of the deal. The co-op will continue to get the plc dividend on the shares.
The terms and conditions of the bond deal are:
The interest rate is less than 1.9%.The share price increase threshold is in the order of 35%. This means if the share price value increases above 35% the bond holders get that value (the upside to the deal). If share price stays below a 35% share price increase, the value stays within the co-op. Background
Just before Christmas, Glanbia Co-op shareholders voted to become the outright and sole owner of Glanbia Ireland.
At a special general meeting, more than 80% of over 4,500 attending co-op shareholders voted in favour of five linked resolutions. This effectively gave the co-op permission to reduce its shareholding in the plc from the current 32.4% to 17%, if it so wishes.
Glanbia Co-op announced last week that it had completed the sale of approximately 5.75m ordinary shares in Glanbia plc (equivalent to about 2% of Glanbia plc’s issued share capital) at a price of €12.25 per share.
In total, this sale will raise about €70m for Glanbia Co-op that will go towards the outright purchase of Glanbia Ireland. This means Glanbia Co-op now has reduced its holding in Glanbia plc from approximately 32.4% prior to the Christmas vote down to 30.5%.
In a separate deal, the co-op also announced that it has raised €250m through an equity-linked exchangeable bond. This means that instead of selling the shares and taking the cash, the co-op is borrowing on the back of the shareholding. Essentially, the co-op is using the security of the shares to get the loan.
The deal ties up approximately 15.1m Glanbia plc shares (5.3% of co-op shareholding).
The co-op retains the ownership of the shares until such time (if any) that an exchange is exercised in accordance with the terms and conditions of the deal. The co-op will continue to get the plc dividend on the shares.
The terms and conditions of the bond deal are:
The interest rate is less than 1.9%.The share price increase threshold is in the order of 35%. This means if the share price value increases above 35% the bond holders get that value (the upside to the deal). If share price stays below a 35% share price increase, the value stays within the co-op. Background
Just before Christmas, Glanbia Co-op shareholders voted to become the outright and sole owner of Glanbia Ireland.
At a special general meeting, more than 80% of over 4,500 attending co-op shareholders voted in favour of five linked resolutions. This effectively gave the co-op permission to reduce its shareholding in the plc from the current 32.4% to 17%, if it so wishes.
This is a subscriber-only article
SHARING OPTIONS: