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Kerry Co Op share Gift from Dry shareholders to Milking Shareholders

  • 05-02-2021 8:42pm
    #1
    JohnnyKq
    Closed Accounts Posts: 154 ✭✭


    Hi all.
    I am wondering what the tax implications are for one type of shareholders gifting hundreds of millions of wealth to another class of shareholders?

    The scenario is Kerry Co op , an investment company i Kerry Group what to potentially rob hundreds of millions of value from certain class of shareholders to buy a milk processing business for another class of shareholders.
    The board fo ot have a Shareholder mandate to do this but are proceeding to do so.
    The milk suppliers will benefit from the ownership at the expense of the dry shareholders.

    The loss to the dry shareholders per the media could be up to 300m.
    The benefiting Milking shareholders (3000 in total) could get a gift of 100,000 each as a result.

    Question; Will we Milk Suppliers have to pay income tax on this gift or transfer of value from the dry shareholders?
    Would it be income tax liability we would have to pay on this extra wealth we get for free?


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