A decision on the issues of transferring voting rights and a further spin-out of shares was kicked out until the autumn at the annual general meeting of Kerry Co-op during the week.
At the meeting, the chairman's and auditors' report was accepted. The same auditors, Deloitte, were re-appointed for another year, and a share interest payment of €3.15 was passed.
It was rumoured beforehand that there might be a special resolution and shareholder vote on transferring voting rights at the Kerry Co-op AGM this week. We understand that at the start of the meeting it was made clear that would not happen.
Seemingly Kerry Co-op board chair Mundy Hayes told shareholders at the start that the board would report back on these issues and hold a special meeting, if required, at a more suitable time for farmers rather than discuss important issues at a very busy time.
The co-op board must consider and report back on whether to advise shareholders on a potential drop in the co-op shareholding below 10% from the current existing 13.7% shareholding. A further spin-out of shares or maybe even a complete spin-out would mean a huge cash windfall for Kerry shareholders. However, a full spin-out would also remove the last significant, but tenuous, bridge connecting Kerry Co-op (the milk suppliers) to Kerry Group plc.
Society rules say there cannot be a total spin-out of shares until a vote is taken to reduce the shareholding below 10%. If that vote was carried, the door would be open to wind the co-op down.
Following the meeting, one local farmer went on local Kerry Radio suggesting that the co-op chair said he will report back within two months and that under the rules of the co-op there is an alternative option if the board doesn’t move on progressing a further spin-out.
He said an option if the Kerry co-op board doesn’t move on something is a rebel grouping just need to get signatures from 20% of co-op shareholders (A and B shareholders) who own over 20% of the shares and have buses on standby to gather and take a vote.
However, he emphasised he hoped it wouldn’t come to that. Our sources suggest the timeframe announced was not as definitive as specifically saying a meeting would be held "within two months".
A larger crowd than normal attended the AGM this year because prior to the meeting there was some speculation that a vote would be taken to allow the conversion of B shareholders (those recently retired from producing milk) to C Shareholders status (non voting shareholders). Some farmers said over 600 farmers attended the AGM but a source close to the board said about 400 farmers attended. The meeting started around 2pm and went on until after 5pm.