Friday, March 29, 2024

Warrnambool directors back takeover offer from Saputo

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Directors of Warrnambool Cheese and Butter (WCB) have recommended that their shareholders accept a takeover offer from dairy giant Saputo.  The directors of Australia’s oldest dairy company unanimously support the offer being made by Saputo after earlier rejecting a takeover bid by Bega Cheese.   Saputo is the largest dairy company in Canada and one of the 10 largest dairy companies in the world.  Saputo produces, markets, and distributes a wide array of dairy products, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients.   Saputo has entered into a takeover bid with WCB under which it will make an all cash off-market takeover offer of $7.00 per share. WCB’s directors recommend that WCB shareholders accept Saputo’s Offer, in the absence of a superior proposal.  It is possible that the company will receive further takeover bids.  Australia’s largest dairy company Murray Goulburn (MG) issued a statement earlier today advising that it considering its options.  MG are currently a major shareholder in WCB. WCB directors and executives have advised that should no better offer be put in front of them, then they intend to accept Saputo’s Offer for all WCB shares they hold or otherwise control.  CEO and Managing Director of WCB, David Lord, said: “The Board has carefully considered Saputo’s Offer and has decided to unanimously recommend that WCB shareholders accept Saputo’s Offer, in the absence of a superior proposal. Saputo’s Offer underscores the strategic value of WCB’s assets and vindicates the Board’s decision to reject Bega’s inadequate, highly conditional offer. Saputo’s all cash Offer provides greater certainty for WCB shareholders and a substantial premium for their WCB shares.” Saputo’s Offer underscores the strategic value of WCB’s assets and vindicates the Board’s decision to reject Bega’s in
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