Some Kerry Co-op shareholders intend compelling its board to hold an emergency vote which could affect plans for a joint venture with Kerry Group.
This venture involves Kerry Co-op – which is the largest shareholder in Kerry Group – buying back the plc’s milk processing facilities for dairy farmers.
Radio Kerry understands that 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 ringfenced and could not be used to finance the joint venture.
A spokesperson for some shareholders says the majority of shareholders with voting rights support such a vote and that a sufficient number of these shareholders’ signatures as well as necessary documentation will be presented to the board of Kerry Co-op on Friday.
This spokesperson says this would force the board to hold a special general meeting.
The board of Kerry Co-op wouldn’t comment.
In June, the co-op had intended putting a resolution around the share redemption scheme issue, regarding the conversion rate of co-op shares to shareholders, at its AGM but pulled it after receiving legal advice.
