Kerry Co-Op Share Redemption - Information not speculation or opinion

OTNiner · 19-08-2021 4:19pm #1

I tried to get a older thread moved from the Kerry forum but it has not happened.

Purpose of this thread is to provide the useful information that was provided in the previous thread without getting into speculation or personal opinions on the board or other posters.

If I understand it correctly the next planned / originally announced redemption event (Nov / Dec 2021) is the last of the 6 announced - anyone any information / idea if these will be continued? I had heard some rumours of an EGM in August but have not heard anything recently.

For those interested last redemption was at PLC 115.84 so 683.50 per Co-Op share, Agriland reported @ 665,000 PLC shares redeemed leaving the PLC shareholding at @ 11.8%

Ref: Kerry Co-op sells €77 million in group shares - Agriland.ie

https://www.agriland.ie/farming-news/kerry-co-op-sells-e77-million-in-group-shares/

Kerry Co-op has sold €77 million worth of its shares in Kerry Group in order to fund a share redemption scheme for shareholders.

Also from the 2020 Co-Op Annual report: Ref https://kerryco-op.com/wp/wp-content/uploads/2021/06/013007_Kerry_Annual_Report_2020_Web.pdf

"SHARE REDEMPTION SCHEME We have now completed four tranches under the Share Redemption Scheme. The price achieved in the June 2020 redemption was €637.20 per Co-Op share while the price achieved in October 2020 was €690.30. There has also been a movement in the grey market where the price averaged €545 for the year with the highest price achieved at €600 per share."

My calculations make this:

Based on an average PLC closing price for the calendar year 2020 of €110.4225, €545 represents a grey market ratio of 4.935586 or 83.654% of the Co-Op redemption ratio of 5.9.

The peak grey market price of €600 represents a ration of 4.77707 or 80.6793% of the peak PLC price of €125.60

In general, these would correlate to the rumoured price ratio of @ 5* PLC being achieved on the grey market.

By my calculations any one in the higher Income tax band looking to cash-in any significant No. of shares would be far better off selling in the grey market thus making it a capital gains tax event - even at acquisition value of €1.25 and Grey market ratio of 87.5% or 5.1625 *PLC price would net +22% over standard redemption.

As unsure of exact rules if anyone wants more information and / or a spreadsheet that will calculate the different net returns (based on entry of a few simple variables i.e. expected income in 2021, PLC share price, qty of Shares and acquisition value.) fell free to PM me.

Finally I believe the closing date for share transfers applications that would meet the timelines for the next redemption event is 24th Sept 2021

regards

cap.in.hand. · 19-08-2021 4:43pm

The forthcoming EGM will include a vote on coop rule changes and will be via zoom I presume....as was AGM. The advisory committees have been debating these rule changes before before being presented to voting shareholders.

OTNiner · 19-08-2021 4:56pm

For MOD's

Is it allowed to post an Excel Calculator here?

While everyone's tax situation is different I have made one that covers the most common Irish categories and current tax rules as I understand them - as per standard redemption application anyone considering redemption should consult with their accountant / tax advisor before committing but this might give people a good starting point.

kerryjack · 21-08-2021 11:49am

Go for it

moll3 · 22-08-2021 10:52pm

https://www.boards.ie/discussion/comment/117777210#Comment_117777210

im all ears

OTNiner · 23-08-2021 9:20am

Basically the elements in Red text can be adjusted - PLC share price, expected 2021 taxable income and Qty of Shares. Those that are highlighted in green can also be adjusted but are probably less common - acquisition value of Co-Op shares if higher than face value, any CGT losses that an individual may have and the Grey market % = PLC * 5.9 * x, currently set to 87.5%

OTNiner · 23-08-2021 3:58pm

While looking at this again I realised that the USC situation is worse than I thought as the 3% surcharge on income over €100,000.00 also applies to non PAYE income for PAYE workers.

Source: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-18d/18D-00-01.pdf

Section 4.3

I deleted the previous version and the revised one that takes this into account is here:

co-op calc inc 11% USC - non PAYE income.xlsx

OTNiner · 27-08-2021 3:41pm

If anyone is considering the next redemption and a grey market / Capital Gains Tax solution would be more tax effective PM me for more information /contact details.

Good rates available - up to 5.25 * PLC

cap.in.hand. · 06-09-2021 7:48am

The business post/radio kerry reporting that Kerry coop is flexing it's muscles blocking the sale of coop shares that a coop shareholder had already sold on the grey market until that shareholder apologises to the coop board and CEO and not to rejoin Kerry coop again as a shareholder if his coop share transfer is sanctioned.

kerry_man15 · 05-01-2022 9:51am

https://www.boards.ie/discussion/comment/117811742#Comment_117811742

What's the going rate at the moment?

cap.in.hand. · 26-05-2022 7:29pm

Kerry coop AGM is to be held at the INEC Killarney on the 21st June '22 at 12 noon

notthereyet · 22-06-2022 8:10pm

Any one at it and most importantly how much dividend are they paying this year and when can we hope to get it in to bank account.

kerryjack · 24-06-2022 2:25pm

4 euro a share and paid Friday 8 July

Kerry Co-Op Share Redemption - Information not speculation or opinion

Ref: Kerry Co-op sells €77 million in group shares - Agriland.ie

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