Bega Cheese is back in the takeover battle for Warrnambool Cheese and Butter (WCB) after boosting its cash and share bid to $8.87 based on current prices.
Bega has raised its offer from 1.2 Bega shares to 1.5 shares plus $2 cash a day after Murray Goulburn raised its offer to $9 cash per share. Saputo's latest offer currently stands at $8 a share.
Only Saputo and Bega, however, have regulatory approval for a takeover. Saputo this week received Foreign Investment Review Board approval and Bega also recently received the all-clear from the Australian Competition & Consumer Commission.
Unlike the other bidders, Bega's offer is also unconditional, so there is nothing stopping WCB shareholders from accepting its bid.
For Saputo to be successful, it needs to secure at least 50.1 per cent of WCB’s shares, which could be a tough sell given that between them, MG, Bega and Lion own around 45 per cent.
When announcing the new offer, Bega said it intended to preserve the WCB name, operating sites and brands, and had no intention of closing the WCB head office or its Allansford, Victoria or Mil Lel, SA sites.
“Bega Cheese has a proven history of growing the workforce of, and investing in, the companies it acquires,” the company said.
Bega also said the proposed offer would be Bega Cheese's final offer and would not be increased further.
Bega Cheese has raised its takeover offer for WCB.
