Bega Cheese has announced it will not extend its offer for Warrnambool Cheese and Butter after it closes tomorrow.
The company said its offer would not be extended and would close as scheduled at 7.00 pm Melbourne time on Friday 20 December 2013.
Bega said it was pleased its takeover offer had “facilitated the competitive takeover process and created significant value for WCB shareholders”.
Earlier this week, rival bidder Saputo extended its offer period to 10 January next year and revised its offer in accordance with feedback from the Takeovers Panel.
Though it kept its offer at $9.00, the Canadian company will boost it to $9.20 if it gets more than 50 per cent of WCB's shares, $9.40 if it gets more than 75 per cent, and $9.60 if it winds up with more than 90 per cent.
Murray Goulburn's offer remains at $9.50 for each WCB share, on the condition it attains more than 50 per cent of WCB shares.
However, MG, the only bidder without regulatory approval, is urging WCB shareholders to wait. It said it believes that there is a significant risk that Saputo will not achieve the 50 per cent, 75 per cent or 90 per cent ownership level given the presence of a number of industry participants on WCB's share register, who currently own approximately 46 per cent of WCB in total.
At last count, Saputo, Murray Goulburn and Bega Cheese now each own around 17 per cent of WCB.
MG also said it had filed an application for merger authorisation with the Australian Competition Tribunal, with a decision expected by the end of February, and that it remained confident of gaining authorisation.
“We urge WCB shareholders to not rush their decision to sell their WCB shares. WCB shareholders should wait until the outcome of the merger application authorisation process has been determined so that MG's offer can be considered on its merits,” said MG managing director, Gary Helou.
“MG remains committed to acquiring WCB and believes the combination of WCB and MG will deliver an Australian owned and operated globally competitive dairy company.”
Bega has said its offer won't be extended when it closes on Friday.
