Kerry Co-op milk suppliers are in line to receive €459m worth of Kerry Group shares on the back of the deal agreed by shareholders this week.

If Kerry plc shareholders vote in favour of the deal today (Thursday) the deal will see the co-op buy a 70% share in the dairy processing facilities of Kerry Group for €500m.

Recently retired milk supplying shareholders are in line to receive €438m in Kerry Group shares from the deal while dry shareholders, known as C shareholders, are to receive around €528m worth of shares.

Milk price dispute

On Monday, A and B shareholders voted 82% in favour of the landmark deal which will also settle the leading milk price dispute.

The agreement will see Kerry Group pay a €50m lump sum to settle the long-running milk price dispute with suppliers which will work out at 5.4c/l.

This payment has not been without controversy in recent weeks, as it is only being paid on milk supplied under the 2015 contract, rather than all milk delivered for processing.

Transformational

“The transaction is transformational for Kerry Co-op and satisfies the diverse aspirations of the vast majority of our members,” co-op chair James Tangney said.

“Working in partnership with Kerry Group, the focus of the Kerry Dairy Ireland board will be to transition the business to that of a co-op ethos and build further on the strong commercial platform in place to deliver sustainable returns in the months and years ahead.”