If approved by members, the rule change will facilitate the release of €239 million of value to members through a spin-out of 15 million Glanbia plc shares. This would be worth approximately €7,013 for every 1,000 shares that a farmer currently holds in Tirlán Co-op, or €24,604 to an average active Tirlán Co-op Member (based on the Glanbia plc closing share price of €15.90 on 28 August 2024).
Tirlán Co-op today is valued at more than €1.7 billion, with a significant proportion of its value concentrated in its 28.9 per cent shareholding in Glanbia plc. Commenting, John Murphy, Chairperson of Tirlán Co-op said: “Currently, the Board of Tirlán cannot reduce the Co-op’s shareholding in Glanbia plc below 17 per cent. At a forthcoming SGM, we will be seeking member approval to amend this Co-op Rule. As a Board, we firmly believe that now is the right time to provide our Co-op with greater flexibility to better manage our financial investments. Our objective, over time, is to diversify and to target increased farmer returns over the long-term to meet the needs of our members. Our focus is on maximising farm returns through payments for milk and grain, as well as targeting the payment of a strong Co-op dividend, allowing us to reward Members now and into the future. We have built a strong Co-op and now is the time to help future-proof it for this generation and generations to come.”
Tirlán Co-op proposes to transfer, via share spin-out, 15 million Glanbia plc shares to all members of the Society in proportion to the shares they currently hold in the Co-op. Based on Glanbia plc’s closing share price of €15.90 on 28 August 2024, this would be worth approximately €239 million to members. If the proposed Rule change is approved at the forthcoming SGM, it is envisaged that the spin-out to Members would occur in the second quarter of 2025.
John Murphy said: “We believe that it is appropriate at this time to release value to our 11,046 Co-op Members. Experience of previous spin-outs suggests that the vast majority of Co-op Members retain their Glanbia plc shares, remaining long-term supporters of Glanbia plc.”
The proposal has the unanimous support of the Board of Tirlán Co-op who recommend it to members for approval at the forthcoming SGM. Commenting, Seán Molloy, Chief Executive Officer of Tirlán Co-op said: “In the coming weeks, we will be engaging with our representative structure on this important proposal and would encourage as many as possible of our members to attend our series of information sessions. Our Co-op Board and management team look forward to answering our members’ questions and hearing their feedback on this proposal. Our farmer-facing team and Co-op Office staff are also available to provide information to Members. We will write to all eligible members in the coming days with details on how to register and vote at the forthcoming SGM.”