An estimated 1,500 plus Donegal shareholders are set for a major cash wind-fall following today’s extra-ordinary meeting of Donegal Investment Group.
The Letterkenny headquarter plc is set to return in the region of €45 million to shareholders in a share buy-back, and the bulk of this money will go to people in Donegal.
Many of the shareholders are small farmers, and a considerable number of them will get a five figure sum.
Some farmers will receive a cash windfall of more than €40,000 each.
Shareholders agreed to the move for a share buy-back at an extraordinary general meeting held today in the Silver Tassie Hotel, Ramelton.
Meanwhile, at its annual general meeting earlier in the day, Chairman Mr. Geoffrey Vance stated that the Group had delivered a very satisfactory performance for the financial year ending 31 August 2017.
Turnover from continuing operations was €77.1m.
The produce division returned to more normal levels of profit delivering a segmental result of €2.2m.
Mr. Vance also commented on the continued progress being made by the food-agri division which delivered a segmental result of €2.4m.
Mr. Vance noted the Interim Results of the group to 28 February 2018 which were released on 19 April 2018.
Mr. Vance was pleased to report on the progress which had been made over the previous 12 months in realising the group’s non-core assets which had generated €62.5m in sale proceeds.
This had led to significant changes to the Group’s portfolio of assets.
Mr. Vance discussed the planned return of capital to shareholders which if passed at the EGM (scheduled to take place following the AGM) would lead to the return of approx. €45m in capital to shareholders. Together with ongoing share purchases by the Company over the past month this would lead to €51m of capital being returned to shareholders since the beginning of 2018.
Mr. Ian Ireland, Managing Director, provided some guidance for the remainder of the year with all business on plan with the exception of the group seed potato operation in Brazil. Mr. Ireland noted that a corporate finance adviser had been appointed to Nomadic Dairy Limited, with a process ongoing which may or may not lead to the sale of this business.
Each of the resolutions proposed at its Annual General Meeting today were approved by shareholders.
In a statement, the company said that the Board was pleased to announce that the resolutions proposed to shareholders at today’s EGM, pertaining to the Company’s proposed Return of Capital, as announced in our 2018 Preliminary Results Announcement of 19 April and as fully described in the EGM Circular of 23 April, were also duly passed.
Donegal Investment Group has around 1,900 shareholders.
With its roots firmly in Donegal and operations across Ireland, the U.K., Holland, France and Brazil, Donegal Investment group continues to manage a diverse portfolio of companies to drive independent success through shared synergies wherever possible.
It is concentrating its growth on:
Produce: Growth, sales and distribution of seed potatoes and organic produce.
Food-Agri: Manufacture, sale and distribution of farm inputs and dairy products and rental and sale of food-agri property assets.
Associates: North Western Livestock Holdings, and other interests.
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