Australian dairy co-op Murray Goulburn has increased its offer for local peer Warrnambool Cheese and Butter Factory – trumping rival Saputo, the Canadian dairy giant.
In the latest twist in the battle for WCB, Murray Goulburn announced today (28 November) it would offer A$9.50 a share for the business.
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The new bid is up from the A$9 a share Murray Goulburn tabled two weeks ago – and which was matched days later by Saputo.
However, this week, Saputo pledged to up its offer to A$9.20 a share if it secured over half of WCB.
Murray Goulburn insisted its latest bid would provide “compelling value” for WCB shareholders – of which it is one. Murray Goulburn, which owns an 18% stake in WCB, said its offer could lead to “an Australian-owned and operated company with the scale, capacity, strength and momentum to capture global growth opportunities”.
WCB’s presence in Asia, a key market for global dairy operators, has been touted as a central factor in the battle for the business. Some Australian industry watchers have expressed concern about a takeover by Canada’s Saputo and the future proceeds of sales in Asia flowing out of the country.
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By GlobalData“We urge WCB shareholders to seriously consider the benefits of MG’s revised offer. This is an important decision that will have significant ramifications for the future of the Australian dairy industry as a whole,” Murray Goulburn said. “As key stakeholders within this industry, we encourage WCB shareholders to take a long-term view when considering the future of your company and the outlook for the Australian dairy industry.”
Murray Goulburn’s new bid still needs approval from either Australia’s Takeovers Panel or the Australian Competition and Consumer Commission. Saputo, which has received backing from regulators, has said the requirement makes Murray Goulburn’s bid “uncertain”. WCB’s board, which has so far supported Saputo, has made similar public misgivings.
Yesterday, Murray Goulburn lodged a challenge to Saputo’s latest proposed A$9.20-a-share offer with Australia’s Takeovers Panel. It said changes Saputo made from its previous offer meant WCB shares had been trading “on the basis of misinformation”.
Bega Cheese, another Australian dairy, has also tabled offers for WCB. Its latest, “final” bid, made two weeks ago, was a mix of cash and shares, valuing WCB at A$8.871 a share.
