The board of Glanbia co-op has urged shareholders to vote in favour of a deal to reduce the co-op’s shareholding in the company to 41 per cent at a crucial vote next week.

In a letter to shareholders, Liam Herlihy, chairman of Glanbia co-op and plc, said the proposal represented the best outcome for farmers.

The final vote on the complex deal, which will involve a sale and spin-out of 10 per cent of the plc’s shares, takes place in Gowran Park in Kilkenny.

The first vote on this stage of the transaction took place last Wednesday. Some 82 per cent backed the deal, with 60 per cent of eligible voters turning out to vote.

Under co-op rules the deal must be supported by 75 per cent of voters at two special general meetings. As well as 75 per cent approval from eligible A1 , A2 and A4 category shareholders, confirmatory approval is also required from 75 per cent of milk suppliers. Attendance at the final vote is seen as crucial for the outcome of the process.