Saputo is poised to win control of Warrnambool Cheese and Butter Factory after its former takeover rival Bega Cheese sold the Canadian company its stake.
With Bega's 18.8 per cent WCB shareholding, Saputo owns 46.17 per cent of the company, up from 26.45 per cent on Monday.
Bega, which initiated the three-way takeover tussle but allowed its bid to lapse last month, will realise between $94.7 to $101 million from the sale, delivering it a profit of between $61.8 and $68.2m. The company said the profit would add to its capacity to pursue a number of strategic business opportunties.
Bega also said that although its preference was to sell its shares to rival bidder Murray Goulburn (MG), the risk in continuing to hold its WCB shareholding until the Australian Competition Tribunal's decision in late February regarding MG's takeover offer was too great.
“It was Bega Cheese's strong preference for WCB to remain Australian owned and operated, either through acceptance of Bega Cheese's bid or Murray Goulburn's bid. The Bega Cheese board is conscious of the significant value of the WCB shareholding and its obligation to its shareholders to continue to make sensible investment and capital management decisions,” the company said.
Saputo's WCB takeover offer is final and closes next week on January 22, and MG must now decide whether it will also sell its stake to Saputo or hang on to try to block a full buyout by Saputo.
MG's offer hinges on acquiring at least 50 per cent of WCB. MG has issued a statement saying that it would “assess the ramifications of this development as it relates to MG's bid for WCB and also MG's 17.7 per cent shareholding in WCB, and will continue to monitor the situation as it evolves”.
With Bega's 18.8 per cent shareholding, Saputo now owns 46.17 per cent of WCB.
