Kerry Co Op Shares

mdpoltd24@gmail.com

I see what you said about low share prices regarding the income tax scheme but the thing is… the “cash for shares” income tax scheme becomes LESS tax efficient the HIGHER the share price becomes…… also for the sake of the examples we had to go with todays share price for each of the examples, otherwise it couldn’t work

For an average shareholder (260 shares) with a below average income even if they wanted to cash the shares in via the “cash for shares” scheme over a few years it’s still probably the very worst option on the table.

When I sold my own co-op shares on the grey market I managed to get the equivalent of 4.95 of a ratio, the vast vast majority of those that sold on the grey market got a ratio less than that and nowadays it’s more like 4.5

With the deal that’s on the table now people will be getting 5.3 PLC shares for every 1 co-op shares & they’ll own the“new co-op” shares as well & the plan is that they’ll eventually be able to be redeemed as well so they won’t be worthless.

If you still don’t believe me that this deal is the way to go then I urge you to ring your accountant tomorrow morning and discuss it with them.

With all due respect I think I perfectly well answered all your questions already and by answering anymore we’re just taking over the thread. The whole thing is going over your head. You made it clear you don’t want to speak to me on the phone so like I said, ring your accountant. I spent enough time trying to explain it to you already and at this stage I just don’t think you’re willing to take any of it on board.

Castlekeeper, I wasted an hour yesterday spelling out every scenario in detail. Let’s be real – you don’t have a clue when it comes to financial matters, and frankly, I’m done trying to drag you up to speed. This vote is sailing through regardless, and your grasp of it won’t make a difference.

Call your accountant if you’re that lost. And the bit about me “sussing you out” – don’t flatter yourself. The idea that I’d spend a second wondering who you are is laughable. I don’t care who you are or how you vote.

I’ve laid out, in black and white, exactly how this JV lines your pockets better than any alternative. Yet, you still come back with idiotic questions. Either you’re completely out of your depth, or you’re just here to stir the pot.

So, by all means, vote no. You clearly don’t get it and probably never will.

I'm amazed at the number of suppliers who want nothing more to do with Kerry. They have absolutely no trust in management. The way that the leading milk price and arbitration findings have been dealt with seem to be red line issues.

It doesn't auger well when suppliers have no clarity over their future input and ownership of the new business. It's surprising that the authors of this deal have not come with a complete picture for the continuing supplier. Their goodwill is paramount to the success of the business going forward.

Pass or fail, you have to think the future of this business is precarious due to the risk of maintaining supply.

When you see the attitudes of the fan boys for it, if that's the mindset of the co-op board they are fully convinced the windfall from the shares will placate the majority of suppliers and they'll happily keep supplying kerry no matter the milk price....

It's a odd game of chicken to be playing when they'll likely lose their largest/youngest suppliers who might have no shares to start of with and a good milk price is alot more financially important to their business into the future, looking at the figures the new entity will have a debt burden of double tirlans with currently a third of the milk been processed by any metric that can't be a viable business

You'd be surprised what I have a clue of, but regardless your failure to understand or clarify the reality that once again this is not a good deal but for a very small cohort is disappointing, but not surprising.

In fairness , I gave you a great chance to put forward and clarify your position which you came on here to post first day, how you dealt with it reflects more on you than me, but I learnt a lot and thanks for your time.

If you don't understand the question it is hard to give the answer, and when it comes to figures, top table bluff and bluster tactics won't cut it.

The vote will go whatever way it will and we'll all be fine afterwards, the more information that's out there the better

Why are you using 2022's figure and not 2023?

Isn't their 25 million a year needed out of this pot to get keep plants going, what where kerry plc spending previously to this on maintance, did they simply run everything into the ground to maximise profits?

Another 7.5 million goes to Kerry plc yearly for their remaining 30% share til the co-op buys it out, why did you leave that out of your above analogy, doesn't suit your argument does it?

You are the only one spouting that CGT need not be paid ,just all you need to do is clarify ,will 33% CGT be due on the proceeds of the sale of Kerry Co Op shares

Oh Jesus cute George 🙈🤣 this proposed spin out will work the exact same as every spin out that ever happened before up to and including the 2013 spin out. I can’t make it any more simple than that. Can’t figure out how anyone on here ever got the idea that any share in Ireland gets different tax treatment over another share

Most simple way to put this is that it’s the same as the spin outs pre 2013. Now if you can’t even understand that just forget about it 😂😂

Well if the plants need €25m per year every year then they can throw their hat at the whole thing. I’d be guessing it just for a few years, if it went on for 10 years it’d just be cheaper build 1 big new plant today.

It’s not 48% that you lose though… let’s say you’ve a €100 in your pocket, you’ve to give your friend €15 and that leaves you with €85 & then you’ve to give the taxman 1/3 of that which is €28… you end up with €57… so you lose 43% not 48%…… Yes you’re right, it’s definitely not a great deal though. The alternative is a vote for liquidation which would require 75% of just the A shareholders, with so many guys with just 1 share there is literally zero hope of that now. Given time the guys with 1 share would be running the co-op, they’d have all the sway on the board and they could issue new patronage shares etc all they’d want and the whole lot of the billions would go to them. So it’s pretty bleak if people vote no to this. I sold all my shares, I’ll be one of those young farmers coming in for the fall of the ball for everyone else’s shares so don’t be blaming me when all this goes horribly wrong

Regarding the capital gains tax on sale of shares. There was an opportunity to cash in when milk quotas were abolished as that capital loss could be offset against capital gains on the shares. I took advantage of it at the time and sold shares. We had over 1 million litres of quota at the time.

Don't know if that relief is still available to anyone who didn't take advantage of it or if it was a "use it or loose it" option.

Interesting reading

Look, if any of you are ready to step into the real world instead of nitpicking, consider this: Kerry Group will hold a 30% stake in this JV, valued around €170 million. They’re not setting up a JV to watch it crash and burn—no one with that kind of investment would.

There’s €7 million per year in dividends going back to Kerry Group for their share, and the co-op has committed €25 million annually for reinvestments in the plants. So if anyone insists on using the profit figure after depreciation, by that logic, you’re suggesting that Kerry Group would knowingly engineer a situation where their €170 million stake goes bust from day one. That’s fantasy.

Calling profit before depreciation ‘propaganda’ is a stretch. Let’s be practical—if you buy a brand-new tractor for €100k, it’ll depreciate by a set amount each year, but that depreciation won’t touch your ability to pay off your loans. The only real impact is on your tax bill. So before throwing around big terms, consider how things work in real-life business.

Kerry group are guaranteed 350 million from this deal and a further 37.5 million over 5 years starting in 2025 even if it went to pot that’s a pretty good outcome for them in the process getting rid of their worst margin arm of the group that they badly want off their books. Give them the benefit of the doubt the farmers are getting Kerry dairy Ireland at a knock down price out of ‘goodwill’ but it’s no secret they were desperate to offload it the last few years how come no external parties tried to buy it if it’s so lucrative?