DEAR SIR: Glanbia Co-operative shareholders have decisions to make on Friday 17 December 2021 during a special general meeting to be held virtually at 2pm.
The most important decision is to ratify the proposed purchase of 40% of Glanbia Ireland (GI) from Glanbia plc by Glanbia Co-op.
GI was created in 2012 to facilitate Irish Glanbia milk suppliers (who are also co-op shareholders) take 60% control of their milk processing. This has been very successful.
Now is the time for GI to have one owner. Glanbia plc has a very admirable business model which has a primary goal of delivering maximum profit to plc shareholders.
Milk processing in Ireland has a primary goal of delivering a strong milk price to milk suppliers while strengthening the business.
The two goals are not compatible. The valuation for buying the 40% is fair.
The two entities, plc and GI, will progress more rapidly as individuals with their different goals.
GI is going forward from here with strength and known purpose. Its primary goal is to deliver a strong milk price while protecting the long-term performance of the business.
The board is also asking shareholders to allow it to place some of the money that’s held in plc shares into other business or investment as the board sees fit. The board of GI has served us well overall in its goal to achieve value for shareholders.
Top priority of the board is giving a commitment to pay a strong milk price while strengthening the business. Please vote yes to all of the proposals for a stronger future together.