KERRY CO-OPERATIVE Creameries has netted €42 million through the sale of 1.5 million shares in Kerry Group.
The shares, with a nominal value of €0.125 each, were placed with institutional investors at a price of €28.25 per share. The proceeds from the sale will be used primarily to repay borrowings.
Following the transaction, Kerry Co-operative Creameries now owns 22.8 per cent of the company, down from 23.7 per cent. Kerry co-operative has been gradually reducing its shareholding in the PLC since the flotation of the company.
Details of the deal emerged following Kerry Group’s agm in Tralee yesterday.
Chief executive Stan McCarthy told some 150 shareholders that significant investment was being put into developing standarised systems across Kerry Group businesses, which would be “critical” for the global food giant.
The full extent of the investment in the business transformation unit would be unveiled in June, he said.
“Our business has become very big and we have had to develop a governance model in finance, HR, purchasing, and so on and it’s going to be critical for us in the future to have very efficient systems,” Mr McCarthy said.
Standardisation was a challenge, particularly where there were so many geographies, 23,000 employees and customers in 140 countries as well as ongoing acquisitions, he said.
Acquisitions would continue – some €25 million had been spent in 2010 acquiring an Indian ingredients company and a UK frozen food company – and the group had a dedicated team looking into suitable companies to add to Kerry’s portfolio.
Mr McCarthy also ruled out a share split as “not a burning platform” right now. If it made sense the board would look at it, he said, in response to questions from the floor after the Kerry share price had reached €29 at one point on Monday.
Former US ambassador James Kenny, currently vice-president of the US-based Kenny Construction Company, was voted on to the board of Kerry Group. The board still has no female member, although the issue was being looked at, Mr McCarthy indicated.
