Kerry Co-op is set to table a €480m offer to buy a 60% majority stake in Kerry Group’s primary dairy business, the Irish Farmers Journal can reveal.
As we went to print on Wednesday, a board meeting of Kerry Co-op was in the final stages of approving the historic offer, which will have major implications for both milk suppliers and dry shareholders.
As part of the proposal, Kerry Co-op is likely to sell up to €0.5bn worth of its shares in Kerry Group plc to fund the transaction.
For dry shareholders in Kerry Co-op, this joint venture deal could see them offered a once-off deal from Revenue that will allow them to swap their old co-op shares for new shares in Kerry Group plc under a capital gains tax (CGT) arrangement and pay less tax.
If it goes ahead, this joint venture will be one of the largest corporate transactions in Ireland in 2021 and will see Kerry farmers assume control of milk processing once again.