Saputo declares victory in WCB bid

Saputo has secured a majority stake in Warrnambool Cheese and Butter in the closing moments of its bid to take over the Victorian dairy processor.

Canada's largest dairy company has announced it now has a 52.7 per cent stake in WCB, just ahead of the scheduled close of its offer period at 7.00 pm tonight, Melbourne time.

This also effectively puts an end to the takeover ambitions of Murray Goulburn, whose offer hinged on acquiring at least 50 per cent of WCB shares. Murray Goulburn currently still holds a 17.7 per cent stake in WCB, which if sold would net the company a significant sum.

Saputo will increase its offer from $9.00 to $9.20 because it reached a relevant interest of greater than 50 per cent during the offer period.

Also, because its share of WCB exceeded the 50 per cent threshold within the offer period, the offer period is automatically extended by two weeks and will now close on Tuesday, 4 February at 7.00pm Melbourne time.

If Saputo gains greater than 75 per cent of WCB during the new offer period, its offer price will increase to $9.40 cash per WCB share, and if it gains greater than 90 per cent, the offer price will increase to $9.60 per share.

Dairy and beverages company Lion, which has a supply contract with WCB, still holds a 10 per cent stake in WCB.