Last week’s Kerry Co-op AGM saw two motions presented by the board defeated.

One related to the amount of notice required for a meeting of the co-op’s board, the other was in relation to syncing board elections.

While the defeats may have been a little embarrassing for the board and its new chair Denis Carroll, they are not seen as being of any further significance. They are rather being seen as “technical matters”.

The main issue in front of the co-op is of the future of Kerry Group’s Irish dairy business. Talks between the co-op and the plc broke down in early 2021.

Kerry Group is understood to still want to divest itself of the Irish dairy business. It’s also probably true that the co-op is still the preferred bidder. Key issues of price and structure remain unresolved.

It is understood there was quite a gap in valuations between the two sides. In terms of structure, is an outright buy-out or an initial joint venture the better option? And crucially, is the current co-op, with its thousands of dry shareholders, the right purchaser, or does the co-op require a rebuild?

The board and a group of shareholders represented by Ciaran Dolan Agribusiness Consultants have each received contrasting legal advice as to whether the board can be placed in “golden handcuffs”. This would see the board prevented from divesting a significant amount of the shares it holds in Kerry Group plc.