Canadian dairy giant, Saputo, has lifted its offer price for the shares it does not already own in Warrnambool Cheese and Butter (WCB).
Releasing a final unconditional offer today Sputo Dairy Australia has increased its cash bid from $8.85 a share to $9.05.
The offer is available to all shareholders regardless of whether they have already accepted the earlier bid price announced at the end of January.
Saputo, which bought about 88 per cent of WCB after an intense four-way bidding struggle broke out in late 2013, has promised to pay any shareholders the $9.05 price within five business days if they have already accepted.
The new price is more than 25pc above the price WCB shares were fetching on the Australian Securities Exchange (ASX) prior to the latest Canadian takeover bid launch ($7.09), and above this week’s most recent ASX sale price of $9.02c.
WCB shares averaged $6.81 each in the six months prior to the takeover offer for the south western Victorian dairy company.
About 10pc of Warrnambool’s shares are held by the Japanese-owned beverage giant, Kirin, which also owns the Lion Dairy and Drinks business in Australia.
Kirin bought into WCB during the bidding war three years ago which began when Bega Cheese launched a takeover attempt and then saw its bid matched and raised by Saputo.
At that time Lion said it wanted to ensure it had a stake in the company responsible for manufacturing much of its cheese products on contract, including the Cracker Barrel and Coon brands.
Lion later sold its cheddar cheese brands to WCB in 2015.
Last year Saputo appeared ready to take control of WCB and delist the company when Warrnambool issued extra shares to its shareholders during a $142m capital raising.
Saputo paid for its full entitlement of extra shares, however so did Lion, which lifted its blocking stake to slightly more than 10pc.
Saputo’s 88pc majority in WCB makes it the fourth biggest dairy business in Australia.
It is also the largest cheese maker and a leading milk and cream processor in Canada, one of the top three cheese businesses in the US and a major yoghurt producer, and the third largest dairy company in Argentina.
Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
