MG ups takeover offer for Warrnambool Cheese and Butter to $9

Murray Goulburn Co-operative Co. Limited (MG) today announces a revised proposal to acquire all the issued shares in Warrnambool Cheese and Butter Factory Company Holdings Limited (WCB) via an off-market takeover offer for $9.00 cash per share (the Revised Offer).  MG’s Revised Offer represents compelling value for WCB shareholders and delivers them a demonstrably superior value outcome relative to all other competing proposals.  The Revised Offer underscores MG’s commitment to acquiring WCB. MG believes the combination of MG and WCB will be very positive for MG, WCB and its shareholders, WCB suppliers, WCB employees, local communities and the Australian dairy industry. The combination of MG and WCB is also the only option available that delivers an Australian-owned and operated company with the scale, capacity, strength and momentum to service global growth opportunities, returning profits to dairy farmers and their communities.  Highlights of MG’s Revised Offer for WCB shareholders  $9.00 cash per Warrnambool share, valuing WCB at $505 million¹, which represents:  o 100% premium over the closing price of $4.51 per WCB share on ASX on 11 September 2013, the last trading day prior to the announcement of the offer by Bega Cheese Limited (Bega);  o 13% premium to Saputo Inc.’s (Saputo) revised $8.00 cash per share offer announced to ASX on 25 October 2013; and  o 24% premium to the implied value of Bega’s offer, based on the closing price of Bega shares on ASX on 12 November 2013. Fully funded with MG having secured debt facilities from its existing financiers National Australia Bank Limited (NAB), Australia and New Zealand Banking Group Limited (ANZ) and Westpac Banking Corporation (WBC).  MG Ma