Glanbia Co-op moved a step closer to full ownership of dairy business Glanbia Ireland as it completes funding arrangements for the €307 million deal.
The co-op said it would raise approximately €70 million through a share placement, comprising 5.75 million ordinary shares in Glanbia at a price of €12.25 per share. That will bring Glanbia Co-op’s stake in Glanbia, to 30.5 per cent.
The group has also raised €250 million through the launch of a five-year equity-linked exchangeable bond. This is linked to a pledge of approximately 15.1 million Glanbia shares, or 5.3 per cent of the issued share capital.
Under the arrangement, the co-op retains full ownership of the pledged shares until an exchange is exercised.
The announcement comes following the backing by Glanbia Co-op shareholders for the deal.
Glanbia Ireland currently operates as a strategic joint venture, with Glanbia Co-op owning 60 per cent and 40 per cent owned by the stock market listed company, Glanbia.
"Our members voted overwhelmingly in favour of taking 100 per cent 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," said John Murphy, chairman of Glanbia Co-op.
Following completion of the deal, the name of both the dairy co-op and Glanbia Ireland will change.
