The Board of Dairygold Co-Operative Society Ltd (Dairygold) and the independent directors of Reox Holdings plc (Reox) have reached an agreement which will see Dairygold acquiring Reox’s property assets in a Debt for Asset swap transaction.

The Reox property assets, having a net book value of circa €24.0m as at 30 June 2013, will be acquired in return for the release of the €16m loan note and certain legacy property related liabilities owed by Reox to Dairygold, plus a cash payment of circa €500,000 from Dairygold to Reox.

The agreement is the result of discussions between Dairygold management and the independent directors of Reox over the last number of months. These discussions were held with a view to resolving Dairygold’s financial exposure to Reox and resulted in the above agreement, subject to the approval of Reox shareholders at an EGM to be held on 28th March, 2014.

The portfolio of eighteen properties to be acquired by Dairygold includes development assets at South Terrace in Cork City; Kinsale Road, Cork; Long Mile Road, Dublin; Annacotty, Co Limerick and Ilminster in Somerset, England.

Commenting on the agreement, Dairygold CE, Jim Woulfe said: “This transaction is in the best interests of Dairygold as it further strengthens the Dairygold organisation, removing its financial exposure to Reox and allowing it to focus on business growth and its post quota strategy.”