Dairy co-operative Murray Goulburn has joined the takeover battle for Warrnambool Cheese and Butter with a higher bid than both Bega and Saputo.
Murray Goulburn's off-market takeover offer of $7.50 per share values WCB at $420 million. Canadian dairy company Saputo's bid is, in contrast, valued at $392 million and Bega's is worth just $370 million.
Murray Goulburn said that its offer was 66 per cent higher than WCB's closing price of $4.51 on 11 September, the last trading day before Bega's offer.
Murray Goulburn already has an 18 per cent stake in WCB. It said the merged entity would be one of the largest Australian owned food and beverage businesses and a globally competitive dairy food company, 100 per cent controlled by dairy farmers.
With forecast annual revenues in excess of $3.2 billion, the acquisition would create a top five Australian food and beverage business. In addition, the combined milk supply was expected be more than four billion litres in financial year 2014, placing the combined business amongst the top 20 global dairy producers, according to Murray Goulburn.
Murray Goulburn chairman, Philip Tracy, said it was an historic opportunity for Murray Goulburn and WCB suppliers and shareholders to create a larger scale, globally competitive Australian dairy food company owned and controlled by Australian dairy farmers.
“Importantly, it will retain the primary objectives of a co-operative in maximising farm gate returns for farmer owners. It will also support on-farm and industry investment, and in turn grow the Australian dairy industry for the benefit of regional communities,” he said.
Earlier this week, WCB formally rejected Bega’s $370 million bid with the release an independent expert's report that described the offer as neither fair nor reasonable.
The WCB board had endorsed Saputo’s offer in the absence of a superior proposal.
Murray Goulburn said the merged entity would be one of the largest Australian owned food and beverage businesses.
