The Irish Farmers Journal understands that Kerry Co-op shareholders will reach the 20% threshold required to trigger an extraordinary general meeting (EGM).

Almost 1,200 shareholders signed forms calling for an EGM, which would be one-fifth of the 6,000 co-op A and B shareholders.

It's understood that the second requirement - that these shareholders would collectively hold no less than 20% of the A and B shareholding - will also be met.

Kerry Co-op staff are processing the applications, which have been collected at various times since early last year.


Those pushing for an EGM accept that some applications may be rejected due to shareholders unfortunately having passed away, having divested their co-op shares or being reclassified as C shareholders since signing.

However, there is no immediate time limit on the collection and submission of applications and there is absolute confidence that the threshold will soon be reached, if it hasn't already been met.

Purpose of EGM

An EGM is being called to put forward a motion that would link each co-op share to a fixed amount of Kerry Group plc shares. This would guarantee the 'see-through' value of co-op shares.

Currently, Kerry Group shares are trading at €92.70. At the 5.9 ratio currently used in the various share redemption scheme events, that gives co-op shares a value of €546.93.

This would have the effect of limiting what the co-op could do without shareholder approval. Negotiations between the co-op and the plc over a potential joint venture have recommenced, having collapsed in March 2021.

A majority stake in Kerry Group's Irish business would cost hundreds of millions of euros, but were the 'golden handcuffs' motion to be adopted by an EGM, the co-op board would control no more than €100m.

Co-op chair Denis Carroll has publicly pledged to bring a plan forward and to bring it to shareholders for approval. That raises the possibility that the board may bring a counter-motion to an EGM, depending on its timing.