Cork co-op sold for €25m to Kerry Group

Updated: 23:29, Friday, 3 September 2010

Shareholders in a Cork co-op are to share a cash windfall of more than €25m after they cleared the way for the co-op to be sold to Kerry Group.

1 of 1 Dairy Co-op Each shareholder will get €50k each
Dairy Co-op
Each shareholder will get €50k each

Around 500 shareholders in a north Cork dairy co-op are to share a cash windfall of more than €25m after they cleared the way for the co-op to be sold to neighbouring food company Kerry Group.

The shareholders will receive an average of €50,000 each from the deal, which is expected to be completed in the coming weeks.

Newmarket is a small town of around a thousand people at the centre of a rich dairy farming area in north Cork.

The town has its own dairy co-op, with a cheese plant capable of producing 35,000 tonnes of cheddar per year, and its success has attracted the interest of neighbouring food company Kerry Group.

Despite the cash offer, a small minority of shareholders opposed the deal but at a special general meeting last night, Newmarket's shareholders voted overwhelmingly to clear the way for Kerry Group to take over the co-op.

Many shareholders have already returned their acceptance forms and, provided the deal is cleared by the Competition Authority, they can look forward to a cheque in the post by the middle of next month.

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