Shareholder group claim Kerry Co-op vote shows members want different share redemption scheme

A group of concerned Kerry Co-op shareholders believes the outcome of a vote yesterday shows that members want a proposed share redemption scheme altered or abandoned in favour of a better option.

Two votes were taken yesterday at a Special General Meeting in the Brandon Hotel involving proposed rule changes at Kerry Co-op.

The first resolution, which was carried, allowed for the shareholding Kerry Co-op holds in Kerry Group plc fall below 10%.

The second resolution, which was rejected by 17 votes, sought to ringfence 96.5% of shares for this or another redemption scheme.

In a statement the board of Kerry Co-op says members voted in favour of the necessary rule change to progress the scheme; it says the first resolution was passed by 62.8% giving the green light to the plan.

The board says it has received 1,475 applications for the scheme, which has exceeded expectations; those applications will now be processed in full.

It adds that it is making no recommendation to members in relation to participation in the scheme and is urging them to get professional financial and taxation advice in advance of any decision.

The board says it stands by its statement, which is factually accurate.

However, the Kerry Co-op Concerned Milk Suppliers and Shareholders’ Alliance says the rejection of the second resolution means members want the scheme to be changed or abandoned entirely and replaced with a more tax efficient option.

Here’s Chairman of the group, Donal Counihan: