Home > Canadian dairy processor issues bid for Warrnambool

Canadian dairy processor issues bid for Warrnambool

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Saputo, one of Canada’s largest dairy processors has released a statement this morning detailing its bid to takeover Victorian dairy processor, Warrnambool Cheese and Butter.

The deal - which Warrnambool has agreed to - is an all cash takeover offer of AU$7.00 per share for all the shares in Warrnambool on issue at the end of the offer period, representing CA$378m.

The Wall Street Journal reports that the offer have been unanimously recommended by the Board of Warrnambool and all Warrnambool directors are recommending that shareholders accept the offer.

The offer will be subject to approval by the Foreign Investment review Board and will require a minimum acceptance of more than 50 percent of Warrnambool shares to be successful.

The offer is expected to close around early December this year, unless extended or changed as permitted by the Australian Corporations Act.

The announcement comes just weeks after directors of Warrnambool Cheese and Butter encouraged shareholders to reject Bega Cheese's $319m bid.

Warrnambool said that Bega’s bid did not reflect the value of recent improvements made to the business.

Image: Warrnambool

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