News milk
Members approve Kerry Dairy takeover
Co-operative Kerry has approved the takeover of Kerry Dairy Ireland by a large majority. This company is being bought from Kerry plc, the listed company, which will temporarily retain a portion of the shares.
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The takeover, which had been hanging in the air for some time, will cost the cooperative €500 million, but not immediately. €70 million must be paid for the acquisition of the first 350% of the shares. The final €150 million will follow in 2035. Until then, Kerry plc will retain a 30% stake.
Paid with shares
Kerry Cooperative does not need to take out a loan for the purchase. This is paid for with shares in Kerry plc. The cooperative owns more than 16 million shares in the listed company. These shares are transferred to the individual members of Kerry Cooperative. They are then free to keep or sell these shares. The total value of the share package is approximately €1,4 billion.
Kerry Dairy is the third largest dairy processor in the Republic of Ireland, after Tirlán and Lakeland Dairies.