Irish food group Glanbia’s plan to sell its Irish dairy business to Glanbia Co-operative Society failed yesterday with co-op shareholders narrowly voting down the proposal.
Glanbia last month announced its intention to sell the Irish dairy ingredients, consumer products and agribusiness units to its 54.6% shareholder, for EUR343m (US$463.4m).
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The sale would have allowed Glanbia to focus on its US and international cheese and nutritionals businesses.
However, at a meeting yesterday (10 May) of Glanbia Co-operative Society’s farmer-owners, the required majority of 75% needed to progress the acquisition was not achieved, with only 73% voting in favour of the acquisition.
John Moloney, group managing director of Glanbia said the firm believe it was a “compelling and strategic opportunity” for both the society and the plc.
“A lot of work has gone into bringing this proposal to the vote today. We did not undertake this process lightly and of course, it is a big disappointment that it did not receive the necessary endorsement from the members of the society to take the deal forward. While it is important for us now to take some time to reflect on this outcome, we remain very confident of the underlying strength of the group’s businesses.”
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By GlobalDataNonetheless, the firm upped its full-year earnings guidance in an interim statement this morning as a result of improved trading and cost reductions.
Glanbia said it is “performing well” to date and is expecting to deliver a “strong” first half.
“The board and management are fully committed to driving the business forward for all stakeholders. Glanbia is a strong organisation with excellent businesses both in Ireland and internationally, great people and a clear and consistent growth strategy,” the firm said.
