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Glanbia agrees sale of Irish Dairy and Agri businesses
Glanbia plc has conditionally agreed to dispose of its Irish Dairy and Agri Businesses to Glanbia Co-operative Society Limited, its 54.6% shareholder.
Key information summary
- The Irish Dairy and Agri Businesses comprise three principal business units: Dairy Ingredients Ireland, Consumer Products and Agribusiness, as well as Glanbia Estates, Group Business Services and Irish Joint Ventures and Associates.
- The Disposal Proceeds comprise the proceeds of the placing of 102m Glanbia shares held by the Society, adjusted by the Risk Sharing Adjustment as described below and cash of €49.7m.
- Glanbia and the Society have agreed a risk sharing mechanism in relation to the Placing Value. The Placing Value will be adjusted by an amount equal to one half of the difference between the Net Placing Price (the proceeds of the Placing, net of all costs, calculated as a per share amount) and €2.65 multiplied by 102m shares. To the extent the Net Placing Price exceeds €2.65, the Placing Value will be adjusted downwards; to the extent the Net Placing Price is less than €2.65, but greater than €2.25, the Placing Value will be adjusted upwards.
- The Disposal Proceeds will be subject to a euro-for-euro working capital adjustment reflecting the difference between the level of working capital in the Irish Dairy and Agri Businesses at completion and €75.3m. Based on the normal working capital cycle for the Irish Dairy and Agri Businesses, working capital at Completion is expected to be approximately €150m which would result in a Working Capital Adjustment of approximately €74.7m.
Read the rest of this Glanbia press release at this link.
Source: Glanbia
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