Australian dairy and beverage group Lion Pty has snapped up just under 10% of Warrnambool Cheese and Butter Factory, the latest twist in the battle to buy the business.
Lion, owned by Japanese food and drink giant Kirin Holdings, said today (29 October) it had purchased 9.99% of WCB.
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“Lion has enjoyed a close relationship with WCB over many years and WCB plays an important role in Lion’s cheese business. Lion considers this stake a continuation and strengthening of this relationship,” the company said.
WCB manufactures some of Lion’s cheese brands, including Cracker Barrel. The acquisition of a stake in WCB is seen as a strategic move by Lion, with its manufacturing partner having attracted three full takeover bids.
Last week, Canadian dairy group Saputo made its second offer for WCB. Saputo’s A$8-a-share bid for WCB is the highest on the table.
Saputo trumped an offer made two weeks ago by another Australian dairy group Murray Goulburn.
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By GlobalDataThe company said Saputo’s offer “continues to be subject to substantial conditionality” and urged shareholders not to rush to accept the bid.
Murray Goulburn, which owns 18% of WCB, said it remained “committed” to buying the business.
A third Australian dairy, Bega Cheese, which tabled the first bid for WCB last month, said it would look again at its offer after competition officials give their verdict on the bid this week. Bega Cheese is also a shareholder in WCB, with a 17% stake.
Click here for our coverage so far on the battle for WCB.
