Glanbia’s largest shareholder is seeking to dispose of a portion of its stake in the group at a co-op member vote scheduled for mid-May.

Glanbia Co-Operative Society, which currently has a 41.7 per cent shareholding in the group, said it wishes to reduce its stake to 36.5 per cent.

The move involves transferring 10 million shares to society members and selling a further 4 million shares in the group to create a special support fund for members.

The vote will require a two-thirds majority of those present and voting at the meeting to be held in May.

Under the current agreement, the society will reduce board members from 10 members in 2016 to 8 members in 2018. If the new proposal is accepted, its representation on the board would reduce by one additional member to seven in 2020. The society currently has 14 members on the board.

In an investors note, Davy said the proposals are “a progressive step for all stakeholders.”

"The proposals represent a significant transfer of value in the society to its members. If the proposals are passed, this will serve to increase the technical free float in Glanbia," said Davy economist Cathal Kenny.