THIS week promises to be big in the dairy industry. Not only is Australia's largest processor, Murray Goulburn, tipped to announce a new chief executive, Bega Cheese is due to select investment bankers for its upcoming initial public offering (IPO).
The company, which received the go-ahead last month from farmers to proceed with the float, is believed to be looking to raise between $30 million and $35 million in new capital. The IPO is tipped to be worth between $350 million and $400 million, giving Bega a market cap higher than that of Warrnambool Cheese & Butter.
The Bega prospectus is due for release in June and the float is scheduled for July, The Australian Financial Review reports.
Murray Goulburn's long-serving chief, Stephen O'Rourke, is due to step down in July and it's believed an external, non-dairy candidate has been chosen with a consensus management style.
Former King Island and National Foods chief Ashley Waugh and Murray Goulburn's chief operating officer Paul Kerr were interviewed for the job, but were unsuccessful, as was Goodman Fielder's former chief Peter Margin. It's thought he would prefer a non-executive role in the food industry.
