Warrnambool Cheese and Butter Factory has indicated that it is considering a rights issue or placement to fund its acquisition of a 50% stake in the Dairy Farmers cheese business.
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Warrnambool acquired a share in Dairy Farmers last week in a joint bid for the group with Kirin Holdings-owned National Foods valued at a total of A$910m (US$757.5m).
According to a report in the Australian Financial Review, Warrnambool chairman David Karpin said yesterday (1 September) that the company is considering funding the deal through either a placement, a renounceable rights issue, a non-renounceable rights issue, or a combination of all three.
Karpin also reportedly signalled Warrnambool’s interest in the Australian arm of Italian dairy group Parmalat, which owns the Pauls brand in Queensland and Victoria.
Parmalat had been in the race to acquire Dairy Farmers but the company withdrew its bid towards the end of the sale process. Some observers have suggested that Parmalat may now be looking to offload its Australian business.
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