Reox to sell stake in farm services firm

Dairygold spin-off Reox is to sell its holding in a farm services business for a reported €8 million.

A spokesman confirmed yesterday that the consumer food and retailing company intended to offer its 55 per cent stake in Shinagh House Holdings to the firm's four other shareholders - Cork co-operatives Bandon, Barryroe, Drinagh and Lisavaird. The deal is valued at €8 million.

The boards of the four co-ops have agreed to the deal. Drinagh will pay Reox €3.2 million while the other three will pay €1.6 million each.

Shinagh House comprises the remaining elements of waste-management, energy and business-services group SWS, which was bought last December by Ion Equity for €110 million.

The Shinagh House business includes artificial insemination and farm registration services and formed part of the SWS operation that was spun off several years ago by the old IAWS co-op, which in 2005 was renamed One51 and switched focus to investing in utilities and alternative energy.

One51, led by former IAWS boss Philip Lynch, bid unsuccessfully for SWS last year. In September 2005, it came close to agreeing a €64 million purchase with the company's board.

Reox is selling Shinagh House because it is not part of its core businesses. Reox comprises Alchemy Properties, Breeo Foods, which includes brands such as Dairygold, Galtee, Mitchelstown and Shaws, and 4Home, a DIY and home supplies retail chain.

Early last month, Reox bought a Dutch food company, Prime Foods, for €10 million.

Dairygold spun off Reox last July. It kept 25 per cent of the company, while its 7,500 co-op members received the remaining 75 per cent.

They were given three Reox shares for every four Dairygold units that they held at the time of the split.