Glanbia plc ("Glanbia" or the "Company"), the global nutritional solutions and cheese group, has been informed by Glanbia Co-operative Society Limited (the "Society") that the proposal to reduce the Society's shareholding in Glanbia plc to 41.4% (the "Proposal") has achieved the 75% approval required at the second Special General Meeting ("SGM") of the Society.
This vote, combined with the approval received at the first SGM held on 28 November 2012, means that the Proposal is now approved. As a result, the Society intends to sell Glanbia plc shares equivalent to 3% of the issued share capital of the Company and distribute shares to individual Society members equivalent to 7% of the issued share capital of the Company.
The approved rule change must be registered with the Registrar of Friendly Societies in Ireland before it becomes effective. This is expected to be completed in the coming weeks, with the share sale expected to take place shortly thereafter.
The Society also confirmed that a resolution proposed at the SGM whereby any reduction in the Society's shareholding in Glanbia plc below 38.0% will require a two thirds majority of relevant Society members at a single ballot, was approved by its members.
Commenting, John Moloney, Group Managing Director of Glanbia plc said: "We welcome today's vote by Society members. From our perspective, it will result in an increase in the Company's free float while it will also lead to a strengthening of the balance sheet of Glanbia Ingredients Ireland ("GII"), the newly created Irish dairy processing joint venture, through the injection of an additional €30 million in equity by the joint venture partners.
The combination of this vote and the recent approval of the GII joint venture represent significant steps in the future development of Glanbia. We would like to thank all of those who contributed to the process over recent months. We look forward to participating in the success of the new joint venture and to maximising the continued growth potential of the Group."
