The Tirlán Co-operative Society, entirely farmer-owned and home to Irish brands such as Avonmore, Kilmeaden, Premier and Wexford, and global brands such as Gain Animal Nutrition, Truly Grass Fed, Millac and Solmiko, is looking for approval from its members to modify its guidelines. The suggested alteration would make it possible for them to distribute €239 million among its over 11,000 members by spinning off 15 million shares of Glanbia.
Tirlán was established after the dairy firm Glanbia Ireland, previously owned by Glanbia Co-operative Society, underwent rebranding to create a separation from Glanbia food group, a publicly listed company. Tirlán continues to be Glanbia’s largest shareholder, with 28.9% of the shares.
They announced plans to have an extraordinary general meeting to decide upon a proposed rule change, aimed at giving the co-op board more autonomy in managing its investment in Glanbia. The chairman of Tirlán, John Murphy, mentioned that the current regulations do not permit them to decrease their share percentage in Glanbia below 17 per cent.
When implemented, members could get approximately €7,013 worth of Glanbia shares for every 1,000 shares they hold in Tirlán co-op, or up to €24,604 for an average active member, as part of share release plans. The significant worth of Tirlán, over €1.7 billion, is largely from their Glanbia shares.
Mr Murphy expressed the board’s conviction that it’s the appropriate moment to give their co-op increased freedom to more effectively manage their financial holdings. He stated their plan is to diversify over time, aiming to increase farmer returns to meet member requirements and focus on improving farm income through milk and grain payments. The idea is to also introduce substantial co-op dividends, enabling member rewards now and in future.
Tirlán has suggested a share spin-out plan where they plan to distribute 15 million Glanbia shares to co-op members, corresponding to the number of shares they currently possess. This move could significantly impact inheritance tax in Ireland – something that could be adjusted in the forthcoming budget. Considering the closing price of Glanbia’s shares (€15.90) as of 28th August, this plan could lead to an estimated value of €239 million for the members. If the suggested amendments get a green signal, the spin-out to the society’s 11,046 members is expected to take place in the second quarter of 2025. This plan has received a full thumbs up from the board. Since 2013, Tirlán has spun out 48.6 million Glanbia shares, currently valued at €772 million. For the move, CEO Seán Molloy has stated the group’s intent to discuss the proposal with their representative structure in the upcoming weeks. He urged maximum member participation at the forthcoming information sessions. He also stated that the farmer-facing team and the co-op office staff are available to help the members and will soon send instructions on how to register and vote at the upcoming meeting to all eligible members.