Kerry Co-op has announced its share redemption offer, known as the “cash for shares” scheme, will open for applications from shareholders next week on Monday 13 May.

The scheme will remain open until Wednesday 5 June.

The share redemption scheme is voluntary but will give shareholders in Kerry co-op the option to sell some or all their co-op shares. Any cash received by Kerry co-op shareholders from this scheme will be deemed as an income distribution by the Revenue Commissioners and, as such, will be subject to income tax rather than capital gains tax.

Market value

Kerry Co-op shares currently have a grey market value of about €300 per share, which Revenue is using as the valuation on co-op shares for gift/inheritance tax purposes when shares are transferred.

However, this scheme is likely to put a much higher see-through value on Kerry Co-op shares and could double to more than €600 per share.