Last week Saputo announced it had secured a 53% stake in the listed processor. The breakthrough came after several months of bids and counter bids by Saputo and two Australian processors Bega Cheese and Murray Goulburn.
Bega earlier this month called it quits, selling its 18.8% stake in WCB to Saputo. Bega had started the takeover battle but fled as bidding skyrocketed.
Saputo’s offer of $A9/share automatically extends for another two weeks. The company had announced it would pay an extra A20c/share if it got more than 50% of WCB, A40c for 75% shares and A60c for 90% or more shares.
Murray Gouburn, which owns 17.7% of WCB, is likely to sell its shares to Saputo. Bega and Murray Goulburn will each make about $75 million from the sale of shares to Saputo.
One of the top ten dairy processors in the world, Saputo is the largest in Canada, the third largest in Argentina and among the top three cheese producers in the US.
Its products are sold in 40 countries. Saputo shares are listed on the Toronto Stock Exchange.
Australian listed processor Warrnambool produces dairy products for domestic and export markets. Its products include cheese, butter and butter blends, milk, cream and dairy ingredients.
Warrnambool operates two factories and has 420 employees.
