Warrnambool Cheese & Butter Factory (WCB), the Australian dairy group, has secured funding for its planned acquisition of a 50% stake in a venture with bigger peer National Foods.

The venture, Australian Cheese Company (ACC), will run the cheese business of Dairy Farmers, which National Foods bought last year. ACC will own brands including Cracker Barrel and Mil Lel.

WCB said today (31 March) that it arranged funding of A$50.6m (US$35m) through an equity raising. The issue comprises a two for three renounceable pro-rata offer to raise the cash through 26.6m shares at a price of A$1.90.

The offer price is at a discount of around 29% to WCB’s shares for the five days before the announcement and a discount of around 18% to the theoretical ex-offer price.

WCB said shareholders participating in the offer can also apply for extra shares under a shortfall facility.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The venture will own and operate Dairy Farmers’ cheese manufacturing, cutting and wrapping facilities at Allansford, Jervois and Simpson.

WCB will supply the venture with a majority of the bulk cheese it needs and milk based on similar agreements with Dairy Farmers.

National Foods will take charge of sales, marketing, distribution and also supply milk to the venture.