It’s claimed that a number of Kerry Co-op shareholders are planning a revolt at the organisation’s AGM today.
Kerry Co-op, which is the largest shareholder in Kerry Group, is holding its annual general meeting in Killarney at noon.
The co-op says it’s not commenting ahead of the meeting which will be held in the Gleneagle INEC arena.
Ciaran Dolan Agribusiness Consultants have issued a statement saying they represent a sizeable number of Kerry Co-op shareholders.
The agribusiness consultants say these shareholders are unhappy over plans to pay for a joint venture with Kerry Group.
This venture involves the buying back of milk processing facilities for dairy farmers.
Ciaran Dolan Agribusiness Consultants say this could see Kerry Co-op paying up to €700 million for this buy back and would reduce co-op funds by up to 40 per cent.
Ciaran Dolan, who owns the consultancy, says up until recently the board of Kerry Co-op and shareholders were in full agreement that co-op funds should be ring-fenced in order to fund the share redemption scheme for a shareholder who wishes to cash in his or her shares.
Mr Dolan says the board is now saying that on legal grounds it can’t proceed with this ring-fencing of funds – he claims that the board is seeking to retain full control over the future use of co-op funds.
According to Ciaran Dolan, shareholders are concerned that the co-op’s funds will be substantially reduced to pay for the joint venture and that so-called dry shareholders with no interest in milk processing will see their value in the co-op reduced significantly.
Mr Dolan says a group of shareholders have received advice from a senior counsel who is of the view that the board is not prohibited from ring-fencing the funds for the redemption scheme.
Ciaran Dolan says it’s likely that shareholders will demand a special general meeting to ring-fence funds.
