It has been announced that Glanbia Co-operative Society (Glanbia Co-op) has completed the placement of shares in Glanbia plc.
A statement published on glanbiaconnect.com said that Glanbia Co-op has completed the placement of 5.75 million ordinary shares in Glanbia plc, which is the equivalent of approximately 2% of Glanbia plc's issued share capital, at a price of €12.25 per share.
According to the statement, the share placement will raise approximately €70 million for Glanbia Co-op, which holds approximately 30.5% of the issued shared capital of Glanbia plc, following the share placement's completion.
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Additionally, Glanbia Co-op has raised €250 million via the launch of an equity-lined five-year exchangeable bond that is linked to a pledge of approximately of 15.1 million Glanbia plc shares, or 5.3% of the issued share capital.
Full ownership of the pledged shares is retained by Glanbia Co-op until or unless an exchange is exercised in accordance with the exchangeable bond terms, and Glanbia Co-op will continue to benefit from any dividend that is paid by Glanbia plc on the shares.
Proposal To Acquire Glanbia Plc’s Shareholding In Glanbia Ireland
Glanbia Co-op is proposing to pay €307 million to acquire Glanbia plc's 40% shareholding in Glanbia Ireland, subject to satisfying outstanding conditions.
Glanbia Ireland operates as a strategic joint venture at present. It is currently 60% owned by Glanbia Co-op and 40% owned by Glanbia plc.
Glanbia Co-op Chairman Statement
In a statement included in the statement announcing the above news published on glanbiaconnect.com, Glanbia Co-op chairman John Murphy said, "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 [extraordinary general meeting]."
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