Kerry Co-op meeting

5live

If you are in the N Kerry area on friday, there is a meeting with our general manager, John O Callaghan at 2.30 in Ballyduff to answer quesions about the proposed share conversion, milk contracts and the proposed drop in co-op directors on the plc board to 3.

I am not sure how well it was advertised as some locally have recieved letters and some not:rolleyes:

As this is the only public meeting to address any questions in public, your support (or not:pac:) would be welcome

Tipp Man

How do you think the vote will go 5live?

What is the general feeling in Kerry about diluting control?

5live

Tipp Man wrote: »

How do you think the vote will go 5live?

What is the general feeling in Kerry about diluting control?

It will be tight i reckon. Some i thought would be in favour are dead set against it and vice versa.

If its carried then the rest of the conversion will happen within 5 years and the dry shareholders will all be in favour. And the journal has it right in we wont have an iota of influence on milk price.

A lot will depend on the ammount of 'bribe' per share they will offer on wednesday. It must be big as they backdated the milk price rise to april 1 so the opposition cant claim the all the co-op dividend money is going to dry shareholders.

You might have guessed that i am opposed;) but 30 pieces of silver now wont leave much for the next generation imo

Chiarrai_abu

I'm milking cows all my life and why should the Cork, Limerick & Clare Kerry Co Op farmers who joined between 2002 and 2010 get the same deal as my father and I who have been supplying from the first day.

I think we should vote no to the proposed conversion until the original farmers from Kerry get a special deal rewarding our many years of loyalty.

I have nearly 500 shares and think the original farmers should get double the amount the newer and non Kerry farmers get. Instead of 6.66 we should get 13.32 Group shares for our Kerry Co Op share. That would make each share worth €400 each!.... I'd then vote yes (Stan McCarthy if you are online)! Convert all the Co Op shares to Group shares then and I'd have €200,000 in my back pocket. Nice one......

5live

Welcome to Boards Chiarrai abu.

I dont agree with you on special treatment for loyalty for kerry suppliers. I am very much a co-op man and i feel that all should be treated equally whether on price size loans or anything. People could argue that the return on the patronage shares over the years that milk suppliers have bought in over 100% a year and those in longest got most.

Are you going on wednesday? You will have your chance to bring it up then.

My biggest concern is milk price not shares conversions. If it goes ahead i will have the bones of 4500 plc shares but once sold they cant be sold again. Its a lot of return to vote against. Eaten bread is soon forgotten and i would like to leave something of value to the next generation if any want this farm when i drop off.

Kerry always state their mission statement ' to pay a leading milk price'. Is a consistent 8th and 9th place in the price league a leading milk price? If so then Tipperary is a leading football county as they are around the middle of the pack every year (sorry tipp people but you are improving, unlike kerry milk price;)).

One thing that may sway your vote chiarrai will be the special dividend to be announced next wednesday. Like 3 years ago at 1 euro (my bet is 2 euro a share this time plus stamp duty payment worth 2.9 million euro too) when the complaints were kerry were paying more to dry than wet shareholders, a big backdated return will 'convince' many to vote in favour when the check hits the current account this morning:o

Look, whatever way you want to vote make your voice heard and vote, whether yes or no

BannerBarry

Ciarrai Abu is missing the woods from the trees here.

Each Kerry Co Op share is worth €196 each. That makes the lucky fool worth €98,000 or so based on his shares value if 100% converted.

If he votes no out of selfishness his Co Op shares are likely to fall to around €50 per share meaning they are then worth €25,000.
Out of Kerry arrogance here he is likely to cost himself €75,000! He'll be supplying milk for many a year before he accumulates this amount of money. If he wants to leave something for the next generation leave them the €100,000 worth of Kerry Group shares..

He does not have to sell these. He gets a dividend of €1.30 per share currently. If converted he would get the true amount, €1.91 per share (28.8 cent by 6.66).. Another €300 dividend per year

The Kerry Co Op board get €700,000 each year in pay and admin costing €0.61 cent per share... What a joke. Convert 100% of the shares.

When I looked for a loan the bank would accept Kerry Group shares as security and not the Co Op shares even though the Co Op shares are worth 6.66 times the Group value... What a waste of shares.

As a Clare supplier I think its insulting to me to think he should get twice as much as me.

Vote Yes Ciarrai.

Chiarrai_abu

Well I'm entitled to my opinion on getting more per share than the newer milk suppliers.

Why would the shares drop in value if there is a no vote from next Wednesday?

I didn't know we would be given a special dividend next week. I'm happy they are trying to sweeten me up a bit anyway!

My biggest concern is not having as many board members on the PLC board. Going frpom 7 to 4 board members, we'd have half the negotiating power.McCarthy could drop us another cent per litre then without us being able to do anything about it.

Anyway, I must go out now and milk my cows!

BannerBarry

You are indeed entitled to your opinion and entitled to vote whatever way you want.
I mightn't agree with some of your points of view.

All I would say is in making your decision on Wednesday consider the following;

1) Kerry Co Op shares are theoretically worth €196 per share if 100% converted now (€29,50 multiplied by 6.66)
2) The average co op A farmer will get €25,000 worth of PLC shares if the vote is approved.
3) The Co Op shares should be getting a dividend per year of €1.91. Instead they get €1.30. The rest is blown on directors pay and administration for a company that does not trade!
4) Your Co Op shares will potentially drop significantly in value if the resolution is not passed. This because there will be no interest from shareholders to hold shares that are not being converted.
5) There is a separate vote on reducing the number of PLC directors from 7 to 4. This is next September and has nothing to do with the Wednesday vote.
6) The average dairy farmer will not make €25,000 profit from farming over a number of years. For that profit he has blood, sweat and tears.
7) You can make €25,000 as simply as voting yes next Wednesday! Remember the bird in the hand, especially when Kerry Group shares are almost at their all time high.
8) Co Op shares cannot be used as security from the bank, Group shares can.

5live

BannerBarry wrote: »

You are indeed entitled to your opinion and entitled to vote whatever way you want.
I mightn't agree with some of your points of view.

All I would say is in making your decision on Wednesday consider the following;

1) Kerry Co Op shares are theoretically worth €196 per share if 100% converted now (€29,50 multiplied by 6.66)
2) The average co op A farmer will get €25,000 worth of PLC shares if the vote is approved.
3) The Co Op shares should be getting a dividend per year of €1.91. Instead they get €1.30. The rest is blown on directors pay and administration for a company that does not trade!
4) Your Co Op shares will potentially drop significantly in value if the resolution is not passed. This because there will be no interest from shareholders to hold shares that are not being converted.
5) There is a separate vote on reducing the number of PLC directors from 7 to 4. This is next September and has nothing to do with the Wednesday vote.
6) The average dairy farmer will not make €25,000 profit from farming over a number of years. For that profit he has blood, sweat and tears.
7) You can make €25,000 as simply as voting yes next Wednesday! Remember the bird in the hand, especially when Kerry Group shares are almost at their all time high.
8) Co Op shares cannot be used as security from the bank, Group shares can.

1.PLC shares worth 29.50 now. Next week could be worth 5.00. Or 55.00. Only 3 years ago they were worth 17.50 because they werent 'sexy' enough in the celtic tiger
2. That figure is only valid if the shares worth 29.50. They are worth what someone will pay on the day you sell
3. Cant argue with that one:D
4. The co-op shares have already dropped in value as trading in them isnt being ratified by the board at present and wont for a while yet
5. True
6. Iirc the average dairy profit is over 25k a year but i can check that out
7. The argument you can make 25k from voting yes next wednesday is simplistic at best. It depends on share price and supply and demand. More shares circulating=lower price for selling. And who says they are at an all time high? A current all time high, yes but with potential to grow (or drop;)) and a fairly big bolt-on acquisition in the pipeline in the next few weeks
8. Banks will accept plc shares as security, yes, but discounted by 50% ie the above mentioned shares could be used as security on 12.k of loans but cannot be sold unless to reduce the loan balance only

Chiarrai_abu

Thanks for all your comments.

I'm happy I'm not voting on the director reduction on Wednesday.
I want conversion longer term but want a bit more recognition of the first day farmers that make the Co op first day through pure hard work.

kerryted

chiarrai abu you are being very selfish to sugest that holders of b and c shares should not benifit from the share exchange I am pissed off that us c share holders do not have a vote on wed I milked plenty of cows down in kerry when i was a lad and all i got out of it was a few ould shares

5live

kerryted wrote: »

chiarrai abu you are being very selfish to sugest that holders of b and c shares should not benifit from the share exchange I am pissed off that us c share holders do not have a vote on wed I milked plenty of cows down in kerry when i was a lad and all i got out of it was a few ould shares

Those few 'ould' co-op shares were converted to plc shares (77.8% of them)
over the last 25 years and are currently traded at approx 29 euro each. Not to mention the dividends paid on them over the years and the dividend on the co-op shares themselves. All for an admittedly hardfought for £1 each:)

And if i read your post correctly you now want more payment for cows you dont milk and havent milked for years? As they say in dublin, gettup de yard:pac:

awaywithyou

5live were you in ballyduff last friday....? much said...? met john o'callaghan once came across as a sound man.....


second question... whereabouts in kerry ya from?

5live

awaywithyou wrote: »

5live were you in ballyduff last friday....? much said...? met john o'callaghan once came across as a sound man.....


second question... whereabouts in kerry ya from?

Did i go to HELL last friday? Yup, i was there (and that should narrow down where i am from considerably;):D)

Look i like john too. But this whole mantra of 'leading milk price' he comes out with is really getting on my nerves lately. Me and john will have another(long) chat about it again on wednesday:)

He went through the whole proposal again and filled out more details (why they tried to sneak it in without meetings i still cant figure) but the crowd was divided in 2 as far as i could see.

Those under 45 with few shares and milking cows were more interested in milk price and against the conversion while those over 45 with a lot of shares (and a lot of losses on property and bank shares) and with no definate sucessor were in favour.

Are you going on wed? And where abouts this glorious island are you from?

awaywithyou

they need to get 75% for it to pass..... i think....?

have a feeling they wont make it... think the surge in interest in dairy farming at the moment amongst the younger crowd might swing it against the PLC boyos...

will the contracts still go ahead as planned if its not passed......?

awaywithyou

and i reside in a parish made famous by a milking machine manufacturer............

5live

awaywithyou wrote: »

and i reside in a parish made famous by a milking machine manufacturer............

I'll wave when i'm passing soon so:D. So you live closer to hell than i do;)

I think the contracts are in anyway as suppliers to non co-ops have no contract at the minute but suppliers to co-ops have an implied contract.

When did you hear first about the conversion? I was talking to a clare supplier a few days ago and he said they knew about it last year. Now either clare suppliers cant stop talking or kerry suppliers cant start. I am often talking to guys on the advisory committees and not once did they mention this coming down the line so i am starting to wonder what else is being discussed that we should know about but arent being told about.

Tbh i am pretty unsure about the conversion but it is a great opportunity to use it to put pressure on for a fair milk price. I think the co-op only exists as an investment vehicle, holding only plc and one51 shares so it doesnt really exist any more anyway. If the vote passes then i'd say the complete conversion will happen within 5 years but i dont see what the rush is

kerryted

5live wrote: »

Those few 'ould' co-op shares were converted to plc shares (77.8% of them)
over the last 25 years and are currently traded at approx 29 euro each. Not to mention the dividends paid on them over the years and the dividend on the co-op shares themselves. All for an admittedly hardfought for £1 each:)

And if i read your post correctly you now want more payment for cows you dont milk and havent milked for years? As they say in dublin, gettup de yard:pac:

Thanks for reply I hope its a yes vote because it will be good for the company kerry group has the potential to become very very big and make millonairs out of all of us, kerry groups sucsess has allways been down to good managment and there is no one better than stan the man so vote yes let some one else milk those ould cows and take up golf or something and watch those plc shares rise

5live

kerryted wrote: »

Thanks for reply I hope its a yes vote because it will be good for the company kerry group has the potential to become very very big and make millonairs out of all of us, kerry groups sucsess has allways been down to good managment and there is no one better than stan the man so vote yes let some one else milk those ould cows and take up golf or something and watch those plc shares rise

One of the criticisms of kery group was the lack of liquidity in their shares made it difficult for the market to determine a 'true' valuation for the shares ie because so few of the shares were traded there was little movement in the values when they were expecting large movements. Basically, most farmers put the share cert in the bottom of the sock drawer and forget about it until they really need cash.

This is just the plc driving the co-op to increase the number of shares traded imo. And as i stated before, an increase in supply or even an expectation of an increase in supply will cause the price to drop.

I agree that management drove the company to where it is but the fuel they used for that drive was lower milk price for us. And milk price is what pays my bills and allows my business to survive and hopefully thrive. Share price is immaterial to my business as it is off farm.

And thanks for the offer to milk my cows tomorrow evening. The cows are in the near paddock and you can start around 5. Thanks:D

kerryted

5live wrote: »

One of the criticisms of kery group was the lack of liquidity in their shares made it difficult for the market to determine a 'true' valuation for the shares ie because so few of the shares were traded there was little movement in the values when they were expecting large movements. Basically, most farmers put the share cert in the bottom of the sock drawer and forget about it until they really need cash.

This is just the plc driving the co-op to increase the number of shares traded imo. And as i stated before, an increase in supply or even an expectation of an increase in supply will cause the price to drop.

I agree that management drove the company to where it is but the fuel they used for that drive was lower milk price for us. And milk price is what pays my bills and allows my business to survive and hopefully thrive. Share price is immaterial to my business as it is off farm.

And thanks for the offer to milk my cows tomorrow evening. The cows are in the near paddock and you can start around 5. Thanks:D

Thats all fine and dandy if you are a lad looking out at a nice spread back around north kerry keep things local and feck everyone else a lot of small little holdings milking 30 to 40 cows depend on those shares to send there kids to collage we cant all stay at home milking those ould cows

5live

kerryted wrote: »

Thats all fine and dandy if you are a lad looking out at a nice spread back around north kerry keep things local and feck everyone else a lot of small little holdings milking 30 to 40 cows depend on those shares to send there kids to collage we cant all stay at home milking those ould cows

Those small holdings were what kerry was built on so if they want to sell then vote yes and good luck to them. Its their choice.

But if they come to me in a few years b****ing about milk price i hereby reserve the right to hit them a slap across the side of the head for leaving those of us that remain at the mercy of a pack of wolves;)

College is free and for the most part grant aided bar the initial registration fee.
When my generation went to college over half had to pay some or all of the costs. And we did, working at home on the farm when needed and working in mcdonalds, bars and shops to earn enough to feed and pay our way at a time when jobs were even harder to find than now. We had no shares to sell only our labour and we did it and all of my classmates found work all through the years we were attending.

And there are still plenty of 30 and 40 cow men around me, just like i was when i started out and they still managed to send their children to college without p***ing away the farms future.

Sorry for getting snippy ted but this is about not just my future viability but my sucessors if they choose to farm. And the future of the people working to collect the milk and process the milk and deliver it to where it is needed. IMO this vote will be a huge determinant factor in the future viability of milk production AND processing and associated knock-on jobs down the line that both our children will be fighting for in the future...

And lost for a quick buck now:mad:

djmc

Sold all my shares in 09 to help with cash flow :mad::mad::mad:

kerryted

5live wrote: »

Those small holdings were what kerry was built on so if they want to sell then vote yes and good luck to them. Its their choice.

But if they come to me in a few years b****ing about milk price i hereby reserve the right to hit them a slap across the side of the head for leaving those of us that remain at the mercy of a pack of wolves;)

College is free and for the most part grant aided bar the initial registration fee.
When my generation went to college over half had to pay some or all of the costs. And we did, working at home on the farm when needed and working in mcdonalds, bars and shops to earn enough to feed and pay our way at a time when jobs were even harder to find than now. We had no shares to sell only our labour and we did it and all of my classmates found work all through the years we were attending.

And there are still plenty of 30 and 40 cow men around me, just like i was when i started out and they still managed to send their children to college without p***ing away the farms future.

Sorry for getting snippy ted but this is about not just my future viability but my sucessors if they choose to farm. And the future of the people working to collect the milk and process the milk and deliver it to where it is needed. IMO this vote will be a huge determinant factor in the future viability of milk production AND processing and associated knock-on jobs down the line that both our children will be fighting for in the future...

And lost for a quick buck now:mad:

No one can tell the future for the few thousand dairy farmers left in kerry i would sugest eat or be eaten but one thing is for certain the world needs to be fed and watered so kerry will always be a good bet

keep me posted if you can as i was not invited to the party today thanks

5live

kerryted wrote: »

No one can tell the future for the few thousand dairy farmers left in kerry i would sugest eat or be eaten but one thing is for certain the world needs to be fed and watered so kerry will always be a good bet

keep me posted if you can as i was not invited to the party today thanks

I'll post after i come home and milk;). Either way, life goes on:cool:

Alibaba

Any news yet on how the meeting went ?

Chiarrai_abu

Well thats that now, an end of an era.
The Kerry Co Op share vote was passed by 80% in favour of the share conversion.
At least democracy decided our fate.

I didn't realise that the farmers will have the same shareholding as before the vote but just not hold their shares in the Group within Kerry Co Op.

I think we should all vote no to the reduction in Co Op directors in Kerry Group PLC September though. Thats the battle we have to fight now.

kerryted

Chiarrai_abu wrote: »

Well thats that now, an end of an era.
The Kerry Co Op share vote was passed by 80% in favour of the share conversion.
At least democracy decided our fate.

I didn't realise that the farmers will have the same shareholding as before the vote but just not hold their shares in the Group within Kerry Co Op.

I think we should all vote no to the reduction in Co Op directors in Kerry Group PLC September though. Thats the battle we have to fight now.

Not to worry chiarrai you have acumalated a few more of those highly valuable shares after today, do you know what it feels like to have some bank share certs, i do, i could use them as toilet paper if i got stuck i am selling my kerry as soon as the cert comes, a good safe long term deposit at 4 or 5 % suits me

Chiarrai_abu

kerryted wrote: »

Chiarrai_abu wrote: »

Well thats that now, an end of an era.
The Kerry

5live

Chiarrai_abu wrote: »

Well thats that now, an end of an era.
The Kerry Co Op share vote was passed by 80% in favour of the share conversion.
At least democracy decided our fate.

I didn't realise that the farmers will have the same shareholding as before the vote but just not hold their shares in the Group within Kerry Co Op.

I think we should all vote no to the reduction in Co Op directors in Kerry Group PLC September though. Thats the battle we have to fight now.

Not so fast chiarrai abu. That was only the first vote.

Total elegible voters 1638 and the yes was won by only 85 votes and only because many decided to vote yes and wait on proposals on transparency on kerrys 'leading' milk price. So close on 400 voted no;)

The top table got a bit of a kicking. Every speaker was on milk price, milk price and milk price. Yet only 2 weeks ago O Callaghan told me that farmers were satisfied with kerrys 'leading' milk price. Towards the end the chairman said there will be a few more questions and the next question was on milk price again:). After he answered the question stan gave barrett a nudge and Barrett announced last question which was on ..... milk price:D

The important thing now is Kerry have resolved to bring information to the next vote outlining their assertion that they ARE paying a leading milk price. I'd say this will be interesting.

We might have lost the battle but we are close to winning this war.

Now all we need is to find out why B shareholders have the right to vote when they havent for the last 25 years:mad:

Chiarrai_abu

To be honest the B shareholders made the Co Op in the years passed.
I know a lot of great men that broke their backs for the Co op in the bygone years that are really pissed they are not allowed vote.
They would probably vote against us is the other side of that I suppose.

The Co Op board were a joke at the meeting, they are puppetts on a string I think.

milkprofit

We in Glanbia land rember the merger promises to pay a leading liquid milk price

They have lead it below the cost of production
Is that the sort of LEADING milk price you want
BEWARE!!!
If PLC in full control their directors are llllllllllLegaly bound to make as much money as possible fo PLC share holders== s--t milk price
What happens when farmer smells the (imediate ) money????

stanflt

milkprofit wrote: »

We in Glanbia land rember the merger promises to pay a leading liquid milk price

They have lead it below the cost of production
Is that the sort of LEADING milk price you want
BEWARE!!!
If PLC in full control their directors are llllllllllLegaly bound to make as much money as possible fo PLC share holders== s--t milk price
What happens when farmer smells the (imediate ) money????

do you agree with the new liquid structure being proposed-i for one will be applying to get paid on solids in sept

kerrymilk

I agree with 5live I am against this vote , the conversion of the shares is only a short term gain, the long term gain will be to have a better milk price in to the future and the hope that the co-op will have better younger directors to negotiate on behave of the farmers in the future.

5live

milkprofit wrote: »

We in Glanbia land rember the merger promises to pay a leading liquid milk price

They have lead it below the cost of production
Is that the sort of LEADING milk price you want
BEWARE!!!
If PLC in full control their directors are llllllllllLegaly bound to make as much money as possible fo PLC share holders== s--t milk price
What happens when farmer smells the (imediate ) money????

Yup. Kerry co-op is nothing more than an investment company anymore. In truth we 'accept' the milk price offered to us by the plc management and accept the obligatory pat on the head when told by our 'betters' to run outside and play now while the adults are talking:mad:

We MAY have got a concession on milk price transparency but the defenition of 'leading' in kerrys vaunted 'leading milk price' has still to be defined to my satisfaction.

Plus if the vote is carried the next day then Kerry will imo spin out the remainder in a few years and also reduce the number of directors to 0 once that happens so we are really in a s**t stew.

So anybody out there who wants a few gallons of milk from kerry for processing just send me a PM:pac:

kerrymilk

5live wrote: »

Not so fast chiarrai abu. That was only the first vote.

Total elegible voters 1638 and the yes was won by only 85 votes and only because many decided to vote yes and wait on proposals on transparency on kerrys 'leading' milk price. So close on 400 voted no;)

The top table got a bit of a kicking. Every speaker was on milk price, milk price and milk price. Yet only 2 weeks ago O Callaghan told me that farmers were satisfied with kerrys 'leading' milk price. Towards the end the chairman said there will be a few more questions and the next question was on milk price again:). After he answered the question stan gave barrett a nudge and Barrett announced last question which was on ..... milk price:D
The important thing now is Kerry have resolved to bring information to the next vote outlining their assertion that they ARE paying a leading milk price. I'd say this will be interesting.

We might have lost the battle but we are close to winning this war.

Now all we need is to find out why B shareholders have the right to vote when they havent for the last 25 years:mad:

5live do you not think that on the day of the vote is too late for Kerry group to be putting forward there new pricing for milk , I think farmers should have this information before the 16th Augs ,so farmers can discuss and decide how there coming to vote on the 16th.
On the issue of letting B share holders have a vote the next time in my opinion this decision was made by the our board of directors as they like power any many of them will be B share holders by the time of next vote to convert the 10% and they will like to have a say.

5live

kerrymilk wrote: »

5live do you not think that on the day of the vote is too late for Kerry group to be putting forward there new pricing for milk , I think farmers should have this information before the 16th Augs ,so farmers can discuss and decide how there coming to vote on the 16th.
On the issue of letting B share holders have a vote the next time in my opinion this decision was made by the our board of directors as they like power any many of them will be B share holders by the time of next vote to convert the 10% and they will like to have a say.

Have to agree with you on both points. 16th is too late for any analysis or constructive criticism but the concession of showing us where they get their assertion on 'leading' milk price is important imo. And the decision to give Bs a vote in the eventual swap is a fundamental shift in milk producers having the final say in that decision. Why the ditching of 25 years of precedence

toneagh

kerryted wrote: »

No one can tell the future for the few thousand dairy farmers left in kerry i would sugest eat or be eaten but one thing is for certain the world needs to be fed and watered so kerry will always be a good bet

keep me posted if you can as i was not invited to the party today thanks

Are u not living in the real world today? It sure was not easy to get summer work any time in the past but rest assured it was easier than what it is now.I have 3 teenage kids that are interested in working and have some pocket money for summer and when they be in college in September.They have tried many shops Mc Donalds and farmers but to no avail. but u just go into any filling station in Ireland today or shop and u are been served by foreign workers.They were not around when u or me weer going through college.Also farming today is so mechanised that no farmer need help on farm on a regular basis.
So get real buddy and dont be so strappy and cercastic u are not God ALMIGHTY

milkprofit

New liquid priceing is crazey we will have about 6 differient prices next winter on stetment
No problem getting paid on constituents
My problem is Liquid price will have droped by 2 3 cents
which will go straight into suprrmarkets pockets

kerryted

Looking for a bit of info on selling these kerry PLC shares i am having trouble finding out the value of them back in 1998 when i got my hands on them is it the value they were when they changed over in 2002 and 2006 and 2007 CGT is a killer at 25% any info would be greatly apreciated thanks

BannerBarry

Kerryted,

Kerry Group PLC shares are worth around €28 each.

If the conversion vote gets passed (like those of us who see the whole picture hopes it will), for every Kerry Co Operative share you have they will covert 25% of them into Group shares at 6.66 PLC to 1 Co Op.

If you have 500 Kerry Co Op shares they will take 125 off you and give you 833 Kerrry Group PLC instead.

These are worth €28 each and would be worth €23,500 to you.

And remember your 375 Co Op shares are still worth loads (Probably €80 each or €30,000).

If the vote is rejected your 500 Kerry Co Op shares will be probably worth €30 at the very most, some say €23 (As they can only ever convert 12.4% of the shares multiplied by 6.66 multiplied by €28)

A Yes Vote means 500 Kerry Co Op shares could be worth €53,500

A No vote means 500 Kerry Co Op shares could be worth as little as €11,500

Can you now see why its so important to vote yes?

kerryted

BannerBarry wrote: »

Kerryted,

Kerry Group PLC shares are worth around €28 each.

If the conversion vote gets passed (like those of us who see the whole picture hopes it will), for every Kerry Co Operative share you have they will covert 25% of them into Group shares at 6.66 PLC to 1 Co Op.

If you have 500 Kerry Co Op shares they will take 125 off you and give you 833 Kerrry Group PLC instead.

These are worth €28 each and would be worth €23,500 to you.

And remember your 375 Co Op shares are still worth loads (Probably €80 each or €30,000).

If the vote is rejected your 500 Kerry Co Op shares will be probably worth €30 at the very most, some say €23 (As they can only ever convert 12.4% of the shares multiplied by 6.66 multiplied by €28)

A Yes Vote means 500 Kerry Co Op shares could be worth €53,500

A No vote means 500 Kerry Co Op shares could be worth as little as €11,500

Can you now see why its so important to vote yes?

I dont have a vote as i am a c shareholder Its in my best interest to see this vote is passed but i can see it from milk supliers point of veiw as well . they are going to have less of a say on milk price and kerry plc is going to be all about profit ,co ops were very sucsessfull as all the profits were shared between there share holders and spent localy, its only a matter of time when you wont be able to buy a pint of milk or a litter of petrol in your local village, the creamariey was at the heart of the community

you2

Also a C holder with genuine sympathy for the milk suppliers however business is business & a good deal needs to be done by the farmers fast!

One media account put the C holding at as much as 50% of the co-op(does anyone know if thats true?)if so this equates to about half a billions worth of shares with no democratic voting rights!!! If the vote does not go through we could see a revolt by the B & C holders in a bid to protect the share value from future one51 fiascos.

BannerBarry

Look at Dairygold where they have 100% of company directors.

They pay less than a cent extra than us per litre than Kerry.

Glanbia Co op have majority control of the PLC and yet they can barely beat us on milk price! Now what are there directors doing?!

If Kerry Group offer to match Dairygold & Glanbia then we should all be happy, we are winning on the shares big time and comparable on milk price.

I think there are 12,000 Co op shareholders, 4,400 A, 4,000 B, 3,600 C or so.

you2

BannerBarry wrote: »

Look at Dairygold where they have 100% of company directors.

They pay less than a cent extra than us per litre than Kerry.

Glanbia Co op have majority control of the PLC and yet they can barely beat us on milk price! Now what are there directors doing?!

If Kerry Group offer to match Dairygold & Glanbia then we should all be happy, we are winning on the shares big time and comparable on milk price.

I think there are 12,000 Co op shareholders, 4,400 A, 4,000 B, 3,600 C or so.

BannerBarry

I am assuming thats shareholder numbers - Any idea whats the breakdown in % shareholding in the the co-op by A B & C holders?

5live

you2 wrote: »

Also a C holder with genuine sympathy for the milk suppliers however business is business & a good deal needs to be done by the farmers fast!

One media account put the C holding at as much as 50% of the co-op(does anyone know if thats true?)if so this equates to about half a billions worth of shares with no democratic voting rights!!! If the vote does not go through we could see a revolt by the B & C holders in a bid to protect the share value from future one51 fiascos.

And what exactly will you do? Write a strongly worded letter?

The A B C structure was put in place to provide those producing the milk with the final decisions on the eventual breakup of the co-op by the conversion of its shares to plc shares. Just as i will not give my bank the right to decide when and where to sell my cattle, as they would sell at first opportunity regardless of the long term effects on my business, i will do all in my power to prevent those looking at their short term interests over the long term interests of my business from selling up at the first opportunity;).

If you want a vote, start milking:pac:

5live

BannerBarry wrote: »

Kerryted,

Kerry Group PLC shares are worth around €28 each.

If the conversion vote gets passed (like those of us who see the whole picture hopes it will), for every Kerry Co Operative share you have they will covert 25% of them into Group shares at 6.66 PLC to 1 Co Op.

If you have 500 Kerry Co Op shares they will take 125 off you and give you 833 Kerrry Group PLC instead.

These are worth €28 each and would be worth €23,500 to you.

And remember your 375 Co Op shares are still worth loads (Probably €80 each or €30,000).

If the vote is rejected your 500 Kerry Co Op shares will be probably worth €30 at the very most, some say €23 (As they can only ever convert 12.4% of the shares multiplied by 6.66 multiplied by €28)

A Yes Vote means 500 Kerry Co Op shares could be worth €53,500

A No vote means 500 Kerry Co Op shares could be worth as little as €11,500

Can you now see why its so important to vote yes?

Lots of assumptions there barry. 28 euro for a start. Could be 15. Or 50

Also assuming that the co-op dont sell any more shares to bring the eventual conversion down from 6.6 like it did from 7.7 iirc.

Even with a no vote the intrinsic value of co-op shares will be retained as there will eventually be a conversion and they were trading from 60 to 85 in recent years. But most dont have the patience to wait so they sell cheap. Bit like the rush to conversion now tbh

cidlyledlights

if you just think everyone are searching for one deal , that will be bad for you, because many people are honest and legal person in business .
if you don't believe other, that means you don't believe yourself .

you2

If the suppliers feel that strongly about retaining control of the co-op why dont you just convert the B & C shares to plc & retain the suppliers(A) actual percentage holding of the group as it is?

Think theres enough milking going on in Kerry Co-op as it is;)!!

BannerBarry

I agree that the intrinsic value is still there if Kerry Co Op Shareholders vote no.
Let me remind you to look at Glanbia Co Op, there intrinsic value is there also but the Co Op shares are worthless as they do not want to convert them to Glanbia PLC shares.
They own 54% of Glanbia PLC.
They are costing themselves €100K each!

Who in their right mind would buy the Kerry Co Op shares at €60 if there is a No vote when those voting (A Shareholders )have the power to block any further conversion?

Maybe the A's should buy the B's & C's but doubt they would have the €600m or €700m handy to do that!

kerryted

5live wrote: »

Lots of assumptions there barry. 28 euro for a start. Could be 15. Or 50

Also assuming that the co-op dont sell any more shares to bring the eventual conversion down from 6.6 like it did from 7.7 iirc.

Even with a no vote the intrinsic value of co-op shares will be retained as there will eventually be a conversion and they were trading from 60 to 85 in recent years. But most dont have the patience to wait so they sell cheap. Bit like the rush to conversion now tbh

5live Are you thinking of living for ever, hoarding those shares like they were gold bars or something you should enjoy your wind fall while you can live for today and let tomorrow look after itself :D:D

Chiarrai_abu

lads dont get too sure of a yes vote, we had a great meeting last week, all the no supporters around Castleisland and we might soften Stan McCarthys cough at the next meeting. We have great support, I thought we mighnt but we do, we might be causing a big upset to the bookies with our plans.