Farmers are are considering a bid to take over the dairy processor Glambia Ireland, it has been reported.
Kilkenney-based, Glambia is best known for its products such as Avonmore milk, had sales of €1.9m last year and €61m profit after tax.
Farmers supplying milk to the Dublin-listed food company, have a 60 per cent share in the country’s largest dairy company with Glambia PLC owning 40 per cent.
Farmers could end up owning all of Glambia Ireland with a plan to spend up to €500m to lift its stake in Glambia Ireland to 100 per cent.
The co-op would reduce its stake in Glambia PLC to fund the additional stake purchase.
IFA president and Glambia supplier Padraig Walsh recently urged Glambia suppliers should look at buying out Glambia PLC’s interest in milk processing.
“Maybe the time has come where we should look at buying the PLC out of those milk processing assets altogether,” he said.
Stock market-listed Glanbia is valued at nearly €4bn, based on its current share price.
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