Canadian dairy products maker Saputo has increased its offer price for all issued shares of Australian cheese maker Warrnambool and further extended the offer period to 10 January 2014.
The latest offer price will be A$9.20 in the event if Saputo acquires 50% or more shares in Warrnambool.
The offer price will further increase to A$9.40 in the event if Saputo acquires more than 75% or more shares in Warrnambool. Saputo will pay as much as A$9.60 to Warrnambool if it acquires 90% of shares.
If Saputo pays the maximum, Warrnambool will be valued at about A$537m (or $480m) at current exchange rates.
Earlier, Saputo offered A$9 per share for all issued shares in Warrnambool Cheese and Butter.
The deal will enable Saputo to foray into the Australian market apart from a foothold in the Asia-Pacific region.
In addition, Saputo has also offered withdrawal rights to Warrnambool shareholders who accepted its offer on or before 17 December 2013, with a withdrawal period ending on 3 January 2014.
Rothschild and Rabobank are acting as the financial advisers to Saputo, while Maddocks and Stikeman Elliott are its legal advisers.
