WCB mulls Murray Goulburn bid

03 December 2013

Warrnambool Cheese and Butter Factory Company (WCB) has urged caution on a $9.50 takeover bid from Murray Goulburn Co-operative (MG).

The offer is 50 cents higher than a competing $9 per share bid from Canada-based Saputo.

The amended MG proposal remains subject to the same previously announced conditions, including MG having a greater than 50 per cent relevant interest in WCB shares and no objection by the ACCC or authorisation being granted by the Australian Competition Tribunal, which is likely to take three to six months.

WCB’s directors will meet shortly to give due and careful consideration to the Amended MG Proposal, as it has done for each of the eight proposals made previously.

The directors will provide a formal response to the Amended MG Proposal after they receive and review detailed information regarding the amended MG proposal, including MG’s bidder’s statement and its Australian Competition Tribunal application.

Until WCB’s directors have issued their formal response to the Amended MG Proposal shareholders are advised to take no action in relation to their shares.

WCB shareholders will have time to make a decision in respect of the amended MG proposal and the competing offers for WCB from Bega Cheese and Saputo Dairy Australia (a wholly owned subsidiary of Saputo Inc.).

Minter Ellison and CIMB Corporate Finance (Australia) Limited are advising WCB in respect of the Amended MG Proposal and assisting WCB’s directors to evaluate and respond to it.

Source: Get Farming Australia, 2 December