29th Dec 2006 13:17
Glanbia PLC29 December 2006 GLANBIA ANNOUNCES SALE OF REMAINING INTEREST IN THE CHEESE COMPANY HOLDINGS LTD FOR STG£47.207M (€70.41M) 29 December 2006 - Glanbia plc, the international dairy foods and nutritionalingredients Group, ("Glanbia") today announced the sale of its 25% interest andStg£35m interest bearing Loan Notes in The Cheese Company Holdings Limited("TCCH"), to the majority shareholder, Milk Link Limited ("Milk Link"), for atotal consideration of Stg£47.207m (€70.41m), payable in cash. These proceedswill be used to fund the growth strategy of the Glanbia Group. This sale will result in an exceptional charge of €9.2m in the financialstatements for the year ended 31 December 2006, relating to the discounting ofthe 2008 - 2018 Loan Notes to current values. TCCH is the largest cheeseproducer in the UK, with strong positions in cheddar, Stilton and Britishterritorial cheeses, supplying the retail, food service and ingredient sectors.For the period ended 1 April 2006, TCCH generated profits before tax of £5.6m.At 1 April 2006, the net assets of TCCH were £32.2m. Commenting on the sale, Glanbia Group Managing Director, John Moloney, said "Wehave had a mutually very satisfactory relationship with Milk Link since 2004during which The Cheese Company has developed into a strong integrated business.We consider now to be an appropriate time to dispose of our remaining interestand to focus on the development of our fast growing international businesses. Iam pleased that we will continue with key commercial arrangements with Milk Linkon a number of fronts going forward." ENDS Exchange rate: €1 = STG 67.046 For further information contact Glanbia plc +353 56 777 2200 Geraldine Kearney, Director, Corporate Communications + 353 87 231 9430 Hogarth Partnership UK +44 207 357 9477 John Olsen This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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