Tirlán Co-op plans US$264M Glanbia share spin-out to members

IRELAND – Tirlán Co-op, one of Ireland’s leading dairy cooperatives, has announced a significant proposal to spin out Glanbia shares worth US$264 million to its members.

This move is contingent on member approval at a forthcoming special general meeting (SGM), a key event that could reshape the financial landscape for the co-op and its members.

The SGM, required to secure approval for a proposed rule change, is necessary because the co-op’s current rules prevent its board from reducing Tirlán’s shareholding in Glanbia below 17%.

John Murphy, chairperson of Tirlán Co-op, explained that the board is seeking this flexibility to better manage its investments, particularly in Glanbia, a company in which Tirlán holds a 28.9% stake.

If members approve the proposed rule change, it would pave the way for the spin-out of 15 million Glanbia shares, based on Glanbia’s closing share price of €15.90 on August 28, 2024.

The distribution would represent approximately €7,013 for every 1,000 shares currently held by Tirlán Co-op farmers.

For an average active Tirlán Co-op member, this could translate into a windfall of €24,604. The spin-out is expected to be completed by the second quarter of 2025, pending member approval.

 “As a board, we firmly believe that now is the right time to provide our co-op with greater flexibility to better manage our financial investments,” Murphy stated.

“Our objective, over time, is to diversify and to target increased farmer returns over the long-term to meet the needs of our members.”

He further highlighted that the co-op’s primary focus remains on maximizing farm returns through payments for milk and grain, alongside ensuring a robust co-op dividend.

This approach, Murphy believes, will allow the co-op to reward its members both now and in the future. “We have built a strong co-op, and now is the time to help future-proof it for this generation and generations to come,” he concluded.

Tirlán Co-op, valued at over €1.7 billion, has a substantial portion of its value concentrated in its 28.9% shareholding in Glanbia.

Over the years, the co-op has distributed 48.6 million Glanbia shares, currently valued at €772 million, to its members since 2013. This spin-out is part of Tirlán’s ongoing strategy to provide financial returns to its members while ensuring the long-term sustainability of the co-op.

Seán Molloy, CEO of Tirlán Co-op, noted that the co-op will engage with its representative structure in the coming weeks to discuss the proposal.

He encouraged members to participate in a series of information sessions designed to explain the details and implications of the proposed rule change.

 “Our farmer-facing team and co-op office staff are also available to provide information to members,” Molloy added.

“We will write to all eligible members in the coming days with details on how to register and vote at the forthcoming SGM.”

The SGM is scheduled to be held virtually, in accordance with the co-op’s rules. Members are urged to attend and cast their votes on this pivotal decision, which could significantly impact the financial future of both the co-op and its members.

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