Agribusiness group Dairygold is looking at an internal reorganisation that some believe could lead to a partial flotation of the company.
The co-operative is expected to split its property, retail homeware and consumer assets from the more traditional dairy and farm aspects of its business. These three divisions could, over time, combine to become a candidate for a stock exchange listing.
In response to a report in the Irish Farmers Journal, a spokesman for Dairygold yesterday said the firm was "considering an internal reorganisation" aimed at facilitating growth across all divisions.
He added that Dairygold had no plans "at present" to issue any shares in any new company to its members. He also said that it "has no plans" to seek outside investors for any part of its business.
The Journal had reported that Dairygold would retain 30 per cent of a new company to be spun out, with the remaining shares to be distributed between the company's shareholders. Dairygold has more than 6,000 shareholders, of whom some 3,500 are farmers. Rather than specifically ruling out this possibility, the Dairygold spokesman said: "In the event that a reorganisation is proposed the board and management will continue to explore the options open to the society for the further development and growth of its various business units."
He said: "no particular model has been ruled in or ruled out at this stage, but no proposals for the future of the co-op will be finalised until the right internal structures have been put in place".
Dairygold anticipates, the spokesman added, that a proposal on the international reorganisation would be put to its members "in the very near future".
While a meeting to decide on the matter has not yet been scheduled, it is expected that it will be organised for the start of next month.
Last year, Dairygold passed through a radical restructuring which saw the co-op exit a number of loss-making businesses. This allowed it to post a 40 per cent increase in operating profits for 2004, despite turnover failing from €964 million to €876 million. Dairygold's property division is focused on three "town-centre" developments - in Mallow and Midleton in Cork, and in Cahir, Co Tipperary - which will allow the firm to rent out commercial and retail units. The three developments are collectively valued at €90 million.
The firm's 4Home retail homeware division currently generates revenue of about €50 million and, according to Dairygold estimates, has 10 per cent of the Republic's homeware market from four stores in Munster.
A further four stores are planned.
