Saputo final offer in its final hours

Canadian dairy giant Saputo has so far secured more than 83 per cent of Warrnambool Cheese and Butter (WCB) as it counts down the final moments of its bid, which closes today.

The company now has 83.295 per cent of WCB and its offer price has risen from $9.20 to $9.40 cash per WCB share thanks to Murray Goulburn's decision to withdraw its bid and sell its 17.7 per cent stake to Saputo, which took its stake above the 75 per cent threshold.

The offer price will rise again, to $9.60 per share, if the company can gain greater than 90 per cent by 7.00pm Melbourne time today.

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

This is the final chapter in the three-way tussle for the Victorian dairy company which has emerged as a strong exporter of dairy products. Late last year, the third contender, Bega Cheese, bowed out, saying it was pleased its takeover offer had “facilitated the competitive takeover process and created significant value for WCB shareholders”.

MG also received at least $92.9 million after withdrawing its bid in January and selling its stake to Saputo, resulting in a gain on investment before tax and costs of $51 million.

“The sale of our WCB shareholding represents an excellent financial outcome for our co-operative,” MG’s managing director, Gary Helou, said at the time.

However, Helou also said MG considered it a “lost opportunity for the Australian dairy industry”.