Kerry Co-op shareholders, who have concerns over plans for a joint venture with Kerry Group, are due to meet the co-op’s secretary today.
The venture involves Kerry Co-op – which is the largest shareholder in Kerry Group – buying back the plc’s milk processing facilities for dairy farmers.
Some co-op shareholders want a vote on a share redemption scheme, which if passed, would leave the Kerry Co-op board with €100 million to finance such a deal with Kerry Group.
Under the plan put forward by some shareholders, most of the co-op’s €2.2 billion in share capital would be ring-fenced and could not be used to finance the joint venture.
Paddy Casey from Killarney is one of the shareholders who supports the share redemption scheme.
Mr Casey, who’s a former member of the board of Kerry Co-op, says his group will meet the secretary of the co-op board today and will present shareholders’ signatures of support for his group’s proposal.
Mr Casey and some other shareholders want a conversion rate for their shares of one to 5.9 plc shares to be added to Kerry Co-op’s rulebook.
He would not say how many signatures his group has gathered but says they will meet the required threshold – this would compel the co-op board to hold a special general meeting at which a vote on the matter would be held.
Paddy Casey says his group simply wants shareholders to be in a position to protect the value of their shares.
He says his group is not trying to force the board and that they are simply looking for an SGM to lock in the conversion rate of their shares.