Murray Goulburn shareholders have approved the asset sale to Saputo, clearing one of the last few hurdles to complete the deal.
At an Extraordinary General Meeting today, Saputo's acquisition of all of MG’s operating assets and liabilities for $1.31 billion received more than 98 per cent of proxy votes.
The deal still requires approval by the Foreign Investment Review Board (FIRB). MG must also obtain consent to transfer operating leases on its fresh milk plants in Victoria and NSW to Saputo.
Yesterday, the Australian Competition and Consumer Commission (ACCC) announced it would not oppose the proposed sale of Murray Goulburn's business assets to the Canadian dairy giant.
Ahead of the vote MG CEO Ari Mervis said that Saputo had demonstrated itself as a "credible and trusted processor in Australia through its investment in Warrnambool Cheese & Butter, providing us with confidence that they will honour all their commitments to suppliers going forward".
"Saputo has also committed to establish a Supplier Relations and Pricing Policy Committee to provide advice and feedback to Saputo on all relevant matters relating to the supply of milk," Mervis said.
MG said it expects the asset sale to be completed on 1 May, assuming FIRB approval is received.
Once the transaction completes, MG will continue to exist and will hold some non-operating assets and liabilities, including cash, retained litigation and a number of subsidiary companies that are not part of the operating business acquired by Saputo.
