Kerry Co-op seems destined for a special general meeting (SGM).

Co-op staff are processing the large volume of letters from shareholders handed in on Monday of last week (14 November) but it will be close to the threshold to trigger a meeting.

For that to happen, 20% of the 6,000 A and B shareholders must have submitted letters, accounting for no less than 20% of the total shares held by A and B shareholders.

It’s understood that around 1,200 letters have been lodged, and these are now being verified one by one. While some may be disqualified for a variety of reasons, signatures are still being collected, and it’s understood that ICOS has advised that they can be added to those already submitted.

The SGM is being sought to put forward a proposal locking each co-op share to a fixed number of Kerry Group plc shares.

The ratio of 5.9 shares is currently being used in share redemption events, where co-op shareholders surrender some or all of their shareholding in exchange for the cash value of 5.9 plc shares for each co-op share.

At close of business on Tuesday, plc shares were worth €94.35, giving each co-op share a see through value of €556.

This would leave the co-op with control over about €100m of shareholding. An investment in a majority share of Kerry Group’s Irish business would cost a multiple of €100m.

It would require the approval of the co-op to release extra funding.

Alternatively, it could be funded by active dairy farmers from their personal resources.

Thomas Hunter McGowan, the Kerry Co-op CEO, said the co-op would follow due process according to rules should an SGM be triggered.

He confirmed that the board itself has the right to call an SGM “at any time”, but said it was unlikely there would be two motions put forward at one time.