Shareholders at Tatura Milk Industries have agreed to merge with Australian dairy company Bega Cheese.
Bega, which already owns 70% of Tatura, today (14 December) announced it will offer redeemable preference shareholders two Bega shares for every Tatura share, resulting in 24m new Bega shares. The combined group revenue is expected to be approximately A$1bn (US$993m) in 2012.
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Barry Irvin, Bega’s chariman, says he is “delighted” that the merger has been endorsed by Tatura’s shareholders.
“Once the merger is complete, the management teams of Bega Cheese and Tatura Milk will work in earnest to capture efficiencies and synergies from the merger.
“The merger will conclude a milestone year for Bega Cheese that has seen the company list on the ASX, announce new business to significantly increase facility utilisation and now secure the approval of Tatura Milk redeemable preference shareholders for a full merger of Tatura Milk with Bega Cheese.
Tatura farmer directors Jeff Odgers and Rick Cross will join Bega’s board of directors if the deal goes ahead. Subject to legal approval, the merger should be completed by the end of this year, a statement from Bega said.
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By GlobalDataIn 2007 Bega bought 70% of Victoria-based Tatura for A$38.8m (US$37.4m).
