Interest in Victorian dairy company Warrnambool Cheese and Butter (WCB) has attracted a new potential bidder, according to media reports.
There is speculation that Chinese state-owned China Investment Corporation is interested in WCB and may step into the bidding war.
Canadian dairy company Saputo has a $9 per share offer for WCB that is due to expire Friday 10 January 2014, though there is speculation that deadline could be extended.
The WCB Board has unanimously recommended that shareholders accept Saputo’s offer, despite a $9.50 per share offer from Australian dairy co-operative Murray Goulburn. The Murray Goulburn offer is conditional on approval from the Australian Competition Tribunal.
Another Australian dairy company, Bega, dropped out of the bidding war in December 2013.
Final Saputo Offer
On 17 December 2013 Saputo issued its Third Supplementary Bidder’s Statement giving effect to the terms set out below as part of the undertaking given by Saputo to the Takeovers Panel.
The principal terms of Saputo’s Final Offer include:
• an unconditional offer of $9.00 cash per WCB share payable within 5 Business Days of processing of acceptances by Saputo;
• Saputo will increase its Offer Consideration by $0.20 cash per Share ($9.00 to $9.20) if Saputo acquires a relevant interest in greater than 50% of WCB Shares during its offer period;
• Saputo will increase its Offer Consideration by a further $0.20 cash per Share ($9.20 to $9.40) if Saputo acquires a relevant interest in greater than 75% of WCB Shares during its offer period;
• the offer period will end at 7.00pm (Melbourne time) on 10 January 2014, unless extended further in accordance with the Corporations Act;
• withdrawal rights will be offered to and confirmations sought from all WCB shareholders who accepted the Saputo Offer on or before 17 December 2013 (Affected Shareholders). If the withdrawal right is not exercised by 3 January 2014, the acceptance will be deemed to be confirmed and payment will be made by 10 January 2014. If an Affected Shareholder confirms their acceptance before 3 January 2014 they will receive their payment within 5 Business Days of receipt of their confirmation;
• all acceptances dated and received by Saputo after 17 December 2013 will be paid within 5 Business Days of Saputo processing them.
