Glanbia Co-op has announced that it has completed the funding arrangements to buy out Glanbia plc’s shareholding in Glanbia Ireland (GI).
The co-op said this morning (Thursday, January 20) that it has completed the placement of 5.75 million ordinary shares in the ‘plc’ (equivalent to approximately 2% of Glanbia plc’s issued share capital), at a price of €12.25/share.
The share placement will raise approximately €70 million for Glanbia Co-op, it said.
Following the completion of the share placement, the co-op holds approximately 30.5% of the issued share capital (as of yesterday) of Glanbia plc.
The co-op also said that it has raised €250 million through the launch of an equity-linked exchangeable bond.
The five-year bond is linked to a pledge of approximately 15.1 million plc shares (5.3% of the issued share capital).
The co-op will retain full ownership of the pledged shares until such time (if any) as an exchange is carried out 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 co-op shareholders on December 17, to approve the acquisition of the remaining 40% stake in GI.
The share placement and exchangeable bond completes the funding arrangements of the co-op for the proposed acquisition of Glanbia plc’s shareholding in GI, which was originally announced on November 10.
Subject to meeting outstanding conditions – including the approval of the proposed transaction by Glanbia plc independent shareholders at an Extraordinary General Meeting (EGM) at a later date – the co-op proposes to pay €307 million to acquire full ownership in GI.
Currently, GI operates as a strategic joint venture – 60% owned by the co-op and 40% owned by the plc.
John Murphy, chairperson of Glanbia Co-op, said this morning: “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,” Murphy added.