MAJOR PROBLEM Kerry Group Old Shares

kerryjack

Maybe its time there was a group set up that wants to protect our shareholding in the PLC and take on the co op even look at going down the legal route if we have to .

Kerry2016

That's very true. Those board members on the co op are something else. There's people going broke and getting thrown out on the side of the road, getting their farms sold by the bank and all this could be avoided if their shares got converted. And the board members are scrambling like rats on a sinking ship doing their best to stop a conversion so they can keep their jobs on the Co Op board earning 16,000 a piece. I've never heard the likes of them before.

kerryjack

Ya its the real kerry joke

fepper

Its good that you ruffled feathers there on the board re the journal,how to escalate to a all out war with the board not representing All SHAREHOLDERS is the question?

BannerBarry

I think it may ultimately require legal action on our behalf to get our Keery Co-Op shares to relise their correct value.

We do have the law on our side.
This is not the way this has to go if the Directors play ball with the B's and the C's and reflect the views of the majority of members.

A high proportion of Solicitors in Kerry and Limerick (alegedly) have shares in Kerry Co Op.
I'm sure we have adequate support and experience on the law if required.

We might have to contact the Healy Raes for help I think.... They are shareholders also I believe!

fepper

B and C shareholders are like passengers while A shareholders are steering the ship with the voting rights and agenda,maybe Il have to supply milk again to get my A shareholding status back again to be involved in voting rights,its a closed shop as it is

BannerBarry

The majority of A shareholders seem to be in favor of realising the full value of their shares also.
The exception being a few of new entrants that feel they have a right to our assets because they supply milk to Kerry Group, the company we own 13.7% of.

It appears to be the Directors of Kerry co-op that may be making as much in Director fees that realising the full value of their shares. I am not sure they are listening to the requirements of ALL their members.
As the accounts say they are "Your Directors". We need to remind them they are required to work for us and act in the interests of all the members.

Kerry2016

Everyone go look at page 8 of the farmers journal. The Co op board are publicly advocating the need to take our shares off us and give them out to young farmers. As far as the Co Op board are concerned our Co Op shares are up for grabs and they're going to give them out to whoever they want, they'll do it whenever they want to. The following board members want to take our shares off us: James Doyle, Conny Sullivan, Tom Galvin, Monday Hayes, O' Leary.

fepper

There was also a excellent letter from tom re his rights for a full exchange for his old shares for plc shares

fepper

And it's mundy not Monday and he was never in favour of any conversions from day 1

Kerry2016

Mundy must be desperate badly off, he's in a complete state of desperation trying to stop all our shares being converted so he can hang onto his position on the board earning 16,000 a year. Talk about having a chip on his shoulder.

BannerBarry

The Kerry Co-Op Annual Report should be out next week.

This should give more clarity on the never ending Strategic Review the Directors are paying themselves to conduct.

Were any members contacted by the Strategic Review Committee for feedback on the direction of what the members want instead of what the Strategic Review Committee wants?

fepper

This is the first time they have ever being questioned on their performances over years and they showed their lack of competence in not having a watertight agreement on milk price with the plc ,another reason to wind it up ASAP

BannerBarry

I think it calls us to question what their function is.
We have already questioned whether they are acting in the interests of all the members.

They do not operate a Trading company. All payments and communication of the A members is directly through Kerry Group. They have no sales or purchases like Glanbia Co-Op have.

They have no authority over the milk suppliers or access to their account details or addresses.

It looks like they made a bags of the MSA and possibly only 600 milk suppliers want Kerry co-op Directors representing them in milk price discussions.

They appear to be threatening non signed up suppliers that if they do not sign up that any benefits from the Mediation would not be given to them.

Kerry co-op may treat different groups differently buy Kerry Group do not.
All benefits would be given to all suppliers... bully boy tactics in the Journal article by the Co op.

fepper

Coop annual report delivered by postman now,interesting reading this morning!! Only €2.50 per share ,Doyle paying himself well with his negotiations skills??

BannerBarry

€2.50 is a bit miserable.
They get €3.06 per co op share from our investment in Kerry Group.
I do not think One51 pays a Dividend currently.

They must have a load of money in the bank now they are not paying us out..... Rainy day Directors termination payments fund I presume ;-)

popa smurf

fepper wrote: »

Coop annual report delivered by postman now,interesting reading this morning!! Only €2.50 per share ,Doyle paying himself well with his negotiations skills??

Thats 2.50 straight into the bank I persume the co op pay some sort of tax an the dividend they get from plc before they pay us 2 50

fepper

No the plc share divideds are taxed at source before payment to you and me,coop dividends paid to you and me are not taxed at source but are declared in your own a/cs so the grubby revenue can get a slice of it again,the dividends paid by plc to coop is tax free I presume??

BannerBarry

13 Kerry co op shares sold on Done Deal for €180 the seller said.
It's not good enough there is not a mechanism in place for those interested in selling their shares at full book value.
With all the cash in the bank as we see in the 2015 Annual Report this €20.3m should be used to pay a special divided or to buy back shares.
That equates to €5.15 per share in the bank and we are getting €2.50. Why not the remainder?

fepper

Latest I heard was €280 per share,that person took a big loss there,I wonder if that €20m includes dividends deposited by plc before pay out

BannerBarry

The accounts would be before the May divided received from Kerry Group so yes there is more in the bank now.

fepper

A share conversion would be the more tax efficient rather than selling coop shares as you get screwed by CGT,revenue value these coop shares at €200 now,they'll screw you anyway!!

BannerBarry

I am sure you are correct on that and the most efficient way is the best way for us... The problem is our Non Executive Directors are in no rush doing themselves out of jobs in the Co Op... We will be waiting.. and the overdraft isn't getting any smaller :-(

BannerBarry

 Irish Independent Article today

Pressure is mounting ahead of the Kerry Co-op AGM where dairy farmers hit by low milk prices and 'dry' shareholders are expected to call for measures to allow them to convert co-op shares into valuable Kerry Group shares.

It comes as mediation has broken down between the Kerry Co-op and the Kerry Group plc over the ongoing row on the 'thirteenth payment'.

Kerry's 3,300 farmer suppliers feel a strong top-up is necessary to fulfil a promise they stress was given to pay "the leading milk price".

A source close to the co-op board confirmed that the mediation had been unsuccessful and an independent arbitrator was now to be agreed by both parties to consider the Kerry milk contract.

A strong presence of farmers and 'dry' shareholders, who hold Kerry Co-op shares but are not supplying milk, are expected to attend the co-op's upcoming AGM on June 21.

It will be the first AGM since Kerry Group chief Stan McCarthy stepped down from his chief executive position with the founding co-op. In addition to the 'thirteenth payment', shareholders are expected to question from the floor why they cannot convert co-op shares into Kerry Group plc shares.

Spin-outs

Farmer shareholders are estimated to hold 30pc of the shares in the plc after a number of spin-outs, while the co-op holds a separate 13.7pc stake of around 24 million shares valued at €1.9bn.

The last time farmers were allowed to convert, each co-op share was valued at 6.2 plc shares, and with the plc share price now hovering close to €80, demand is growing.

Over 64.5 million plc shares have been issued to farmers over seven spin-outs since 1993, which would be valued at around €5bn based on the recent share price.

One milk supplier and co-op shareholder from Listowel said farmers were eager to be permitted to convert co-op shares into plc shares.

"People feel very strongly about it and are really getting cross on it. A lot of frustration has built up," said the milk supplier.

"It should be released to people whose backs are to the wall and the wolf is at the door. There is no reason to stop people converting over shares."

For a co-op shareholder with 500 shares, it is worth roughly 3,100 plc shares, which works out at over €244,000 based on the share price over the €79 mark.

However, while co-op shares maybe worth nearly €480-500 with the last conversion rate, they have been fetching less on the 'grey' market. Some farmers are understood to have been parting with them for €200 to €300 to try and release cash on farms.

Kevin Galvin, the ICMSA Kerry chair, said the elected members of the Kerry Co-op board have always represented farmers' interests and "we'll trust them to do the same on the further share conversion".

"There are guys out there in genuine financial stress whose interests amount to €200,000, €300,000, €400,000 or maybe even a million and some of them are looking for the conversion," he said.

"But in the longer term, our position is we want there to be an increase in Kerry's milk price as that would help our members an awful lot more."

 

cute geoge

Please consider the most of young farmers have few if any co op shares .
It will seriously effect the price kerry plc pays for there milk if the farmers have not any representation on the kerry plc board .At the moment kerry co op elect 4 directors ,this will be reduced to zero if all the shares are converted .
Can you come with any suggestions how the young farmers can be protected without representation on the plc board .
The plc could turn around any day and say we dont want want your milk any more ,it has happened in dairy companies in england last year

fepper

All milk is bought and paid for by the plc at this stage anyway ,I'm sure representatives for milk suppliers would still be on the plc board

kerryjack

cute geoge wrote: »

Please consider the most of young farmers have few if any co op shares .
It will seriously effect the price kerry plc pays for there milk if the farmers have not any representation on the kerry plc board .At the moment kerry co op elect 4 directors ,this will be reduced to zero if all the shares are converted .
Can you come with any suggestions how the young farmers can be protected without representation on the plc board .
The plc could turn around any day and say we dont want want your milk any more ,it has happened in dairy companies in england last year

George you said it there you have no shares in the co op ,its as simple as that you should have no say in the co op no business in the co op, its like land George they are not making any more of these you think they can by stretching them evan more we have all hard of a land grab this is no different this is a share grab how would you like if I fenced off a corner of your place. Forget about the co op and set up ye own group regarding milk price and move on

fepper

When Stan McCarthy stepped down(forced out) from Kerry coop that finished the coops usefulness with regards milk price as relations between coop and plc are at a all time low now

BannerBarry

cute geoge wrote: »

Please consider the most of young farmers have few if any co op shares .
It will seriously effect the price kerry plc pays for there milk if the farmers have not any representation on the kerry plc board .At the moment kerry co op elect 4 directors ,this will be reduced to zero if all the shares are converted .
Can you come with any suggestions how the young farmers can be protected without representation on the plc board .
The plc could turn around any day and say we dont want want your milk any more ,it has happened in dairy companies in england last year

George, everyone sympathises with suppliers in the current environment. It's really tough especially for anyone borrowed.
The Oil industry is tough also and was loss making at $27 a barrel in February. The suppliers at the low prices in the oil industry are not asking those that supplied oil at $120 for some of their investments to help them.

Kerry co-op is a holding company for investments. This is its function. Check the Annual Report.
It has no employees.
It has no turnover
It has no operations

Your grievance is with Kerry Group.
The well funded farming bodies are there to support you on milk price.. IFA ICMSA etc.

Dairygold & Glanbia Co-Op own their milk processing and paid well lower than Kerry Group price for 2015. What good was Board membership there???
We all wish that milk prices recover but this should not be the sole reason for my co op shares to be devalued by over 50%

Kerry2016

cute geoge wrote: »

Please consider the most of young farmers have few if any co op shares .
It will seriously effect the price kerry plc pays for there milk if the farmers have not any representation on the kerry plc board .At the moment kerry co op elect 4 directors ,this will be reduced to zero if all the shares are converted .
Can you come with any suggestions how the young farmers can be protected without representation on the plc board .
The plc could turn around any day and say we dont want want your milk any more ,it has happened in dairy companies in england last year

There's contracts in place meaning they have to buy our milk off us. Also if all the co op shares were converted then more of the co op's board of directors would be put onto the PLC's board of directors. Don't talk about things that you clearly don't know anything about.