GLANBIA’S PROPOSAL to hive off its Irish dairy business as part of a joint venture with its co-op members moved a step closer yesterday after Glanbia Co-operative Society signed legal contracts with the plc regarding the proposed transaction.

The move paves the way for the first vote on the proposal, which will take place on November 13th at various polling stations around the country.

That vote, which requires 50 per cent shareholder approval from co-op members, will involve the offloading of 3 per cent of the co-op’s 54 per cent holding to fund the deal as well as a loan note from the plc. Some 7,800 co-op members are entitled to vote, while plc shareholders will vote on the transaction a week later.

If both are passed, two further special general meetings will be held, at which co-op members will be asked to vote on whether to sell an additional 10 per cent of co-op shares in Glanbia plc, 7 per cent of which would be distributed to co-op members in the form of plc shares, with 3 per cent sold to generate cash to fund the deal.

The extraordinary general meetings need 75 per cent shareholder approval. If passed, the co-op’s shareholding in the plc will drop to just over 41 per cent.

Information meetings have been taking place with co-op members across the country over the last month.

Under the proposed deal, a new entity, Glanbia Ingredients Ireland (GII), will be created, which will be 60 per cent owned by the co-op and 40 per cent owned by the plc.

The transaction, if approved, is expected to be completed by year-end.

Glanbia closed down at €7.34 yesterday evening in Dublin.