The proposed de-merger of fresh produce giant Fyffes was approved by shareholders at an extraordinary general meeting in Dublin this week (Tuesday).
The resolutions, which include setting up new company Total Produce, have been confirmed.
The de-merger will see Fyffes, its subsidiaries and associated companies, concentrating on bananas, pineapples and melons. Meanwhile, Total Produce, with group companies and associates, will supply a full range of fresh produce.
Shareholders on the Fyffes register on December 29 at 5pm will be allocated one Total Produce share for each existing Fyffes share held.
Fyffes chairman Carl McCann told shareholders at the meeting that both units were currently undervalued by the market and that he believed the shares should be valued at E1. Separating the companies will provide a focus for each arm and create more value for shareholders.
Trading in Total Produce shares is expected to start on the Irish Stock Exchange’s IEX market in Dublin and the AIM in London on January 2, 2007. Fyffes shares will begin trading on January 10, 2007.
Fyffes confirmed that it will implement the “fast track” admission procedures applicable to companies moving from the Official List of the Irish Stock Exchange to IEX and from the Official List of the UK Listing Authority to AIM. McCann said the new listing will allow both groups to grow without main-market restrictions. l
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