According to the Australian’s press, Murray Goulburn, the other Australian player in the fight, says it still has the best takeover offer despite Canada’s Saputo sweetening its bid.
Bega Cheese started the bidding war in September, but will let its bid lapse when its offer period closes on 20 December. Bega owns close to 18% of Warrnambool shares and said it would consider its options regarding that stake once its offer closes.
Murray Goulburn said that its offer of $9.50 for each Warrnambool share ‘remains the highest current value offer’ for Warrnambool’s shareholders, before accounting for any increases in price that depend on certain ownership thresholds.
Following an interim order from the Australian government’s Takeovers Panel, Saputo has maintained its offer of $9.00 but has increased the amount it will pay if certain share thresholds are met. The bid is final. Its offer will rise to $9.20 if it gains more than 50% of Warrnambool’s shares, $9.40 if it gets more than 75%, and $9.60 if it obtains more than 90%.
Murray Goulburn has said there was a significant risk that Saputo would not achieve the 50%, 75% or 90% ownership level required to trigger its offer increases.
“This risk is heightened due to the presence of a number of industry participants on WCB’s share register, who currently own approximately 46% of WCB in total,” said Murray Goulburn.
As well as Bega Cheese’s holding, Murray Goulburn has over 17%, and Kirin-owned Lion about 10%. Saputo currently has nearly 17%, but WCB shareholders who accepted the Saputo offer before 17 December have withdrawal rights.
Murray Goulburn’s bid of $9.50 is conditional upon it obtaining more than 50% of Warrnambool shares. It has also filed an application with the Australian Competition Tribunal for authorisation to merge with Warrnambool on the grounds that a merger would be of public benefit. The tribunal is expected to make a decision by the end of February.
Source: The Australian/News.com
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