The spin-out has an estimated value of approximately €174m based on the Glanbia plc official opening share price of €17.35 on 24 August 2015.

For members, the deal is worth €4 per co-op share meaning that a member with 5,000 co-op share will receive €20,000 with the average member receiving €11,100. It is understood that the active farmer shareholders (dairy and grain farmers) will receive an average payout of €18,000.

Back in May, Glanbia co-op overwhelmingly voted in favour of releasing 10m of the shares it holds in Glanbia plc, worth more than €170m, to its membership.

Speaking after the confirmation of the deal Glanbia chairman Henry Corbally said:

“This spin-out demonstrates the power of the Glanbia model. Farmer members are paid a competitive market price for their produce, and also benefit from the value created in Glanbia plc, which ultimately flows back to members through their shareholding in the Society.

“It is also worth highlighting that while the Society’s shareholding in Glanbia plc has reduced somewhat, our majority shareholding in Glanbia Ingredients Ireland (GII) remains unchanged at 60%. This is the business of most direct importance to our dairy farmer members”.