Kerry Co Op Shares

Some are saying that the possibility of a 75% majority vote by A shareholders for a liquidation option is impossible, delusional etc. Kerrycow and Straight here are A shareholders that might also seem disposed towards it. Many of the A shareholders with low shareholdings might also be wary of Kerrys plc's track record with milk prices and contracts, and the Co-op's record with investments and negotiations. More may have parents or siblings as B and C shareholders and mightn't want to see them short-changed

Some more may be worried about a declining milk pool and an increasing levy on the remaining milk suppliers for a valueless business.

I wouldn't see it being as cut and dried as others, but it's hypothetical at the minute.

Very interesting, but will it at least be a business that's owned by a coop? Or owned by current shareholders directly and not by a coop?

I have just read a kerry radio article from Jan 2024 where Denis Brosnan said kerry share holders should not invest in a kerry co op milk processing venture and that it should be only milk supplier that should fund it ,

That makes total sense as why would you want non farmer investors investing their plc shares in to a milk processing , that should be only milk supplier oriented ,

It will be a jv forever , especially when you use the funds of dry holders to invest in a jv , even when the plc is gone the dry share holder will be there ,

Its just another mess , created by this board in their quest for existence ,

Cut loose ,

Vote for liquidation , and let the dry share holder go ,

Farmers are not getting control

They are jumping from the frying pan to the fire .

The coop are asking all shareholders including dry shareholders to vote to allow or not a haircut on their shareholdings ... they're not being compulsory confiscated

yes but they will get shares in the new KDI in return I presume for their hair cut investment ,

Thus keeping them in the jv , and the co op would not be farmer own after the final 30% is bought out ,

Open to correction on my interpretation

You’re entitled to your opinions, KerryCow, but let’s set the record straight: the board of this new company will be made up primarily of dairy farmers like us. We will quite literally be in control.

It’s disingenuous to suggest otherwise. Whatever your take on the other aspects of this deal, you’re simply wrong to claim that dairy farmers won’t have control—we absolutely will.

Remaining 40% was bought in 2021 by the co-op, that deal seen co-op shares been converted to plc shares to the tune of half a billion and taken from members , to fund the deal, with noting issued in return, bar a spin-out of plc shares for cancelled co-op shares amounting to 140 million from memory...

The caveat is a glanbia co-op share had no see through value, as it couldn't be sold/traded and converted to plc shares, the spin-outs where the only way any windfall could be got…

Tirlain today couldn't exist in its current form only for the fact they where able to do the above to fund the buyout and invest in processing, it's why I'm scratching my head re Kerry co-op been able to function after the deal given debt levels/investment needed in processing/and threats to its milk pool

I think best solution at this stage the co op

Should put forward motion to use all the funds required to buy this Jv outright, all now upfront , from the spin out of the shares , give each contributor new KDI shares and give them the dividend of each years profits , the balance they can put the plc shares in their pocket and away they go ,

Then after that’s done come back to us milk suppliers and show us the contract you are offering and we can look it over and if there’s a better offer then we are off ,

How does that sound to all share holders .

I wouldn’t agree . It would be much more clean cut to let the share holder’s continue to own what they indirectly already own , it’s just a case of tidying up the transfer papers .
The profit of the KDI would be distributed to its share holders .

They can pay the farmers what they feel the market supports , no different to the plc ,

In general the farmers were relatively happy with the plc , except for them not following the contract ,

So let the new KDI draft us a contract that suits both sides .

So this deal can be tweaked slightly and let the farmers out , They don’t have the funds for this

The management of KDI would stay as is , everything stays as is , except the kerry co op board and its share holders would have the decision of strategy .
what holding hands have they ?
just get the plc to buy product as in this jv proposal ,

If you are spending 500 m and you can get yourself to the position they find themselves today , and with no debts or loans , then sure they should be in a much better situation to succeed .

milk suppliers will still have to contribute though.. but not as much...

Neither of these are going to happen as like liquidation they would not get passed. Even some A shareholders would not vote for either of those proposals and very few B share holders vote for them.

When i look at this all share holders they are taking a haircut.. as they are effectively putting in one plc share worth over 80 at min.. given the new co op will not have an easy way to trade shares these may be worth less than half than value if you try sell in grey..

kerry plc could sell the milk suppliers to another buyer and stipulate that no share up is required , milk suppliers would support that and the milk pool would transfer as a whole as it would benifit the suppliers ,

Milk suppliers would be very sucure in moving to a proven DG , tirlan or similar , with no share up , but coming with plc steel and a steady milk pool .

Kerry co op go your own way then ,

So there are options ,

Give the share holders 100%

Give suppliers what they already have , a milk buyer and no levies .

kerry co op are pushing their own agenda , and the suppliers are been scared in to this ,

STOP

Ftm you mentioned earlier that 1 c cost on to 40 c now it’s is 2.5% extra cost ,

But in fact if you make 10 cent a litre profit , it’s 10% of your profit , and in a bad year it would be a higher % of your profit . SO like the Kerry’s , it can be spun what ever way you like it .