Dekker Glascultures shares sold to The Valley
Since 2018, the members of the Prominent cooperative have been co-owners following its restructuring from a traditional cooperative to a cooperative with share capital. Frank Dekker, one of the members of Prominent, sold his company Dekker Glascultures to his neighbour this year and will therefore stop growing tomatoes next season. In addition to his business, he also wanted to sell his accumulated shares in Prominent. Following a bidding process within the organisation, the shares were transferred to another Prominent member, The Valley.
The first share transaction is a major step for the cooperative. “Over the years, Prominent has built up a strong position with, among other things, an interest in various nurseries. As a result, the value of Prominent shares has increased almost sevenfold in five years. We are now seeing the added value coming back to the members,” says Jack Groenewegen on behalf of The Valley. Frank Dekker: “I have seen Prominent grow over the years. Its approach has changed from working together to doing business together. It is a privilege to be the first member to place my signature below the purchase contract along with Jack, our chairman of many years. This is a wonderful milestone and a nice way to bring my career as a tomato grower to a close.”
Cooperative with share capital Following in the footsteps of the Prominent Growers Association cooperative, in 2020 the Growers United sales cooperative also became a cooperative with share capital. Prominent is a brand of the Growers United Cooperative. This organisation is responsible for the sales, marketing and quality control of the product. A cooperative with share capital has a number of key benefits for members compared with the traditional model. Existing and new members are offered the opportunity to become shareholders. This makes it more attractive for the members of the cooperative to make joint investments. Because the shares can be traded internally and represent value, it is easier for the businesses to raise funds. Members can remain shareholders of the cooperative even if they sell or close their business. A member that stops trading or is seeking liquidity to grow, for example, can also opt to sell their shares, enabling them to tap into the accrued value in the cooperative.