Kerry Co Op Shares

of the 25million needed annually for reinvestment will Kerry group be coming up with some of it?? seeing as they have a 30% stake in the business…

The shares side of it doesn't affect me as I don't have any in either the co-op or plc.. I'm looking at this deal as a milk supplier only..

The logical thing to do would be to give shares to milk suppliers based on their financial contribution of 1 cent per litre for 5 years. It would keep milk suppliers on board.

The whole thing smacks of sour grapes by the PLC over the leading milk price debacle.

Plc shares or new coop shares for per litre contribution?

I see what you’re both saying about getting shares for the 1c/L contribution

It would have to be shares in the new JV which will essentially be Kerry Co-op 2.0

I don’t think anyone has an issue with suppliers getting shares in KCC 2.0 in exchange for milk produced and contributions made

I’m not sure how widely known it is but basically some of the biggest “non dairy farming” shareholders in the co-op allegedly went and got legal advice to try stop this whole JV because they didn’t want 15% of their shares used to fund this new JV

I think shares will for 100% certain be issued to milk suppliers as time goes on but plans for it haven’t been released yet for fear it would “rock the boat” too much

I’ve heard talk of future schemes in place where shareholders could redeem their shares in the co-op if they wanted to, the idea would be that you’d end up with the co-op being largely owned by the milk suppliers themselves

There's about 400 milk suppliers with one share. It's important to look after these guys as they are the only hope for the future. Everyone should get the 5.4% topup on milk volume supplied and forget about quota bullsh1t. It would cost 5million to fix it which is 1% of the overall deal. How much have the lawyers, etc. got so far....

It looks to me like this deal was designed by the PLC. They pushed as far as they thought they could get away with.

In my opinion there is no way they would sell the dairy processing to a complete outsider. They would loose access to the dairy ingredients and it would be a complete PR disaster.

They saw the CoOp as a soft touch.

The PLC are grabbing as much as they can get away with off everyone, to the benefit of no-one in particular.

All gone up in the funny money world of hedge funds etc.

Maybe the management will get a big fat bonus if the share price hits a target or there's a takeover after the dirty cow farmers have been scrope off the sole of the plc's boot, who knows?

The chances of a complete liquidation are miniscule. You need 75% of A shareholders to vote for it so highly unlikely.

On the present deal some do not seem to be aware of a few other facts. KG are giving approximately a 50 million loan as well it's KG that is buying tge 15%of co-op share to fund this deal and they are cancelling them. This should prevent a share collapse if 150 million euro worth of shares had to hit the stockmarket in one go. You could expect a 5-10%price hit on that type of sale.

I expect that milk suppliers will be given KD shares for there cent a litre. The KD investment per co-op share will be approx at 90-95 euro per share. Allowing for improvement in share value could a new KD share be allotted for every 10-12k L supplied during the levy period. At 12K/ share it woukd be nearly 42 shares per 500k L supplied every year during the levy period. Over 5 years 205-210 shares.

I imagine any negotiation on future milk price will be linked to an EU or world composite benchmark price

it doesn’t stack up financially ,

The pool of milk won’t be there to support the projections ,

When doing a business plan you have to factor in the different scenarios , the good , the bad and the ugly ,

So let them put these 3 scenarios on front of us , and not just the sugar coated option ,

Stop the smoke screens .

Farmers need to demand this .
it’s the next generation that will be saddled with this decision

Excellent post, KerryJack. One of the best and most balanced contributions I’ve ever read on Boards. Well done.

Now, onto a related matter. One of the producer group members is going around telling people about a major supplier who admitted that an extra cent per litre as part of the JV would be make-or-break for their business. If someone has expanded to the point where one cent could sink the ship, that’s entirely on them. Blaming the co-op, the PLC, or anyone else for poor financial management is deflection, plain and simple.

As for the producer group itself, I don’t see it taking off at all. But if it does, I genuinely hope they secure the best milk price in Ireland, because from what I’m hearing, some of their members will need it badly.

For the average shareholder, voting no to this proposal would be completely irrational. For the suppliers with just one share, they’ve got nothing to lose and everything to gain. Not only are they getting a 5.4c top-up, but they’ll also receive shares in a new €500m business. If they had even a hint of what’s going on behind the scenes, they’d be the first in line to vote yes.

I’ve made it my business to discuss the proposals with a very wide variety of people, the JV has been incredibly well-received. There’s always going to be a few who are angry at the world and oppose progress for the sake of it. We saw the same crowd trying to hold everyone back during the 1996 and 2011 votes and they’re at it again now 😂😂

But let’s be clear: this is a generational opportunity. The deal is fair, it’s balanced, and it benefits the vast majority. There is no doubt in my mind that it will pass, and rightly so.

Not a continental f**k is given about the future of milk suppliers that haven't a couple of hundred k of a share spin-out to get, the fan boying over a half a billion euro milk processor been a printing press for money when 1-2% is considered a good return and industry norm from gross sales the mind boggles, why had tipp co-op to merge with Arrabawn over circa 50 million of outstanding debts on a 250 million litres milk pool if the milk processing job is so profitable

I don’t know why ftm is getting so emotional about the shares spin out and the milk suppliers.

First of all the vote will be carried and he will get his windfall . And rightly so .

The milk suppliers are left then to make the Jv work with the pool of milk they have . So that is a decision for each of them to decide at that time , if they believe in contributing to the project .

On the issue of these bigger suppliers , rather than running them in to the ground because of their decision on expansion , I believe it’s a business decision , and the prospect of donating 50k a year from a milk cheque is a lot of money over 10 years , so rightly so , people should be allowed their views .
everyone is entitled to their view and democracy should carry the day , both with the spin out and the choice that of milk purchaser .

It is disingenuous to categorise anyone ,

People are entitled to their money , all around

Nothing h wrong with the eircom shares made about 30% on them within a months. Shares are all about timing. What happened after was a disgrace Shane Ross and Eamon Dumphy did a hatchet job on the company and at the wrong part of a telecoms cycle got the company split and the mobile company was sold for share in another company . Rumour has it the Kerryman on the board Dick Spring was against the deal but the FF aappointees were under pressure because of the flack by Ross and Dunphy. Was it not peculiar that Ross's employer was part of the consortium that bought Eircom.

When you buy shares or a pension you have to remember values go up and down. Look at Kerry group shares presently down 30% off peak at present and they were nearly 50% off peak. As Warren Buffet says the stock market is the only place when when there is a sale on buyers are not interested.

Talk about deflection 101 “kerrycow” 🤦‍♂️😂 I don’t think making valid points with facts and figures etc is what most people would consider emotional. I think whether or not anyone agrees with me I think we’ve all been receptive to one another’s contrasting views. It wouldn’t be very interesting if we were all coming on here to agree with one another, would it? 😂😂

Look as for those comments regarding the producer group etc I’ve no problem telling you who said it. I think it was poor form on their behalf. I’d wish anyone else the best of luck with everything always. The person that said it has plenty of their own business to be minding.