Glanbia Co-operative Society (“Glanbia Co-op”) today announced that it has completed the placement of 5.75 million ordinary shares in Glanbia plc (equivalent to approximately 2% of Glanbia plc’s issued share capital) at a price of €12.25 per share. The share placement will raise approximately €70 million for Glanbia Co-op.
Following the completion of the share placement, Glanbia Co-op holds approximately 30.5%* of the issued share capital of Glanbia plc.
Glanbia Co-op has also confirmed that it has raised €250 million through the launch of an Equity-Linked Exchangeable Bond. The five-year Exchangeable Bond is linked to a pledge of approximately 15.1 million Glanbia Plc shares (5.3% of the issued share capital). The Co-op retains full ownership of the pledged shares until such time (if any) as an exchange is exercised in accordance with the terms of the Exchangeable Bond and will continue to benefit from any dividend paid by Glanbia plc on the shares.
The share placement and exchangeable bond issue follow the decision taken at a Special General Meeting (SGM) of Glanbia Co-op shareholders on 17 December 2021 to approve the acquisition of 40% of Glanbia Ireland from Glanbia plc. Completion of the share placement and exchangeable bond completes the funding arrangements of Glanbia Co-op in connection with the proposed acquisition of Glanbia plc’s 40% shareholding in Glanbia Ireland (as originally announced on 10 November 2021).
Subject to satisfaction of outstanding conditions, including the approval of the proposed transaction by Glanbia plc independent shareholders at an Extraordinary General Meeting (EGM) at a date to be confirmed, Glanbia Co-op proposes to pay €307 million to acquire Glanbia plc’s 40% shareholding in Glanbia Ireland.
Currently, Glanbia Ireland operates as a strategic joint venture, 60% owned by Glanbia Co-op and 40% owned by Glanbia plc.
John Murphy, Chairman of Glanbia Co-op, said: “I am pleased to confirm to Co-op Members that we have successfully completed the financing arrangements required to put in place the funding for our proposed acquisition. Our Members voted overwhelmingly in favour of taking 100% ownership of the world-class processing assets closest to our farmers’ interests and we look forward to closing that transaction in the coming months, subject to the approval of Glanbia plc’s independent shareholders at their EGM.”
Glanbia Co-operative Society Limited is Ireland’s largest Co-operative, with 11,200 members and a current value of approximately €1.6 billion. Glanbia Co-op is the largest shareholder in Glanbia plc, holding approximately 30.5% of the issued share capital of the Company as at the date of this announcement.
Glanbia Ireland is a world-class integrated agri-food and nutrition business with eleven processing facilities, 52 agri-branches and over 2,100 employees. It is Ireland’s number one dairy company, with a three billion litre milk pool and paying over €1.3 billion directly to farm families for milk and grain this year. It is the largest buyer and user of Irish grains, with over 270,000 tonnes handled each year.
Its award-winning brands are household names in Ireland, with Avonmore fresh milk being Ireland’s number one dairy brand. Glanbia Ireland has a strong global footprint with a market presence in the UK, France, Germany, UAE, the US, North Africa, Japan and China. Glanbia Ireland currently exports to over 80 countries.