Dairygold Co-operative members yesterday voted overwhelmingly to to restructure the business and spin out shares in a new unlisted plc to existing co-op members.

At a special general meeting the members voted by 965 votes to 129 to restructure the company. Chairman John Walsh said: "I now look forward to working with the board and management to implement the decision and help to realise the full potential of all of our businesses in the future. This is the first confident step in building a strong business which will generate real benefit for our members."

Dairygold's chief executive Jerry Henchy said the strong turnout was a reflection of the high level of interest among shareholders in the proposal.

"Last January Dairygold shareholders took the decision to reorganise the business by establishing a new wholly-owned subsidiary of the co-op and transferring into it the society's non-core, non-farming businesses [ Consumer Foods, 4HOME Superstores and Alchemy Properties]," he said.

"We have now brought the restructuring project one stage further as today's spin-out of shares in this company - Reox Holdings - ensures both our members and the co-op will be able to benefit to the fullest extent possible from the growth potential up to now trapped inside Reox Holdings, which can be unleashed with access to capital and share liquidity," said Mr Henchy.

Yesterday's decision means the co-op will now transfer ownership of 75 per cent of the shares in the subsidiary company - Reox Holdings - directly to members. The co-op will retain the remaining 25 per cent.

Members will receive their shares in Reox Holdings in direct proportion to their existing shareholdings in the co-op, on the basis of three shares in Reox Holdings for every four shares currently held in Dairygold Co-op.

Mr Henchy said the three non-farming businesses vested in Reox require approximately €400 million to implement their five-year business plans.