Glanbia, Kerry, Dairygold and a number of co-ops could be set to share in a €128 million windfall from the sale of 11 million shares in food company IAWS.
IAWS Co-op, a separate entity to the plc, but which held a significant stake the company, has transferred 11 million of its shares to another company, IAWS Nominees Ltd.
In a letter to the plc, IAWS Co-op said yesterday that the nominee company would hold the 11 million shares on behalf of the Co-op's members. The move was part of its transition to plc status.
IAWS Co-op does not discuss the details of its members or their holdings, but it has 40 shareholders. These include food and ingredients players, Glanbia and Kerry, who hold 9 per cent and 8 per cent of the co-op respectively.
Dairygold, Fane Valley and Lakeland Dairies each hold 8 per cent. Wexford Farmers' Co-op has 6 per cent, Drinagh and Connaught Gold have 3 per cent and Lisavaird Co-op has 1 per cent.
IAWS Co-op's biggest single shareholder is the UK-based Co-op Wholesale Stores (CWS), which has 13 per cent of the co-op.
One source said yesterday that it was likely that at least some of the co-op's members would sell their individual stakes in IAWS plc following the transfer to the nominee company.
The plc closed in Dublin yesterday at €11.60 (down five cent on the day), valuing the 11 million holding at €127.6 million with Kerry and Dairygold's 8 per cent valued at €10 million.
This would value Glanbia's interest at close to €11.5 million and that of CWS at around €16.6 million.
IAWS Co-op originally held 70 per cent of the plc when it floated in the 1980s. It has reduced this steadily and, following yesterday's move, has just 255,000 shares, or 0.2 per cent of the quoted business.
