Saputo Raises Warrnambool Bid to A$537 Million in Dairy Fight

Farm Journal logo

Saputo Inc., Canada’s biggest milk processor, raised its bid for Warrnambool Cheese & Butter Factory Co. to A$537 million ($480 million), after a ruling from Australia’s takeover regulator.

Saputo will pay a maximum A$9.60 cash a share on condition it gains more than 90 percent of Warrnambool, the Montreal-based company said today in a statement. It had previously offered A$9 a share rising to a maximum of A$9.20. The offer trumps a A$9.50 bid from Murray Goulburn Cooperative Co. and a cash and share offer from Bega Cheese Ltd.

The three-way contest for 125-year-old Warrnambool, based near the town in Victoria that bears its name, has more than doubled its market value since Bega, its largest shareholder, made an initial bid on Sept. 12. Bidders are seeking to increase production and add export infrastructure to help them tap rising demand for dairy produce in Asia.

"These increases will be available to all shareholders regardless of when they accept, including those who have already accepted the Saputo offer," the Canadian processor said today in a statement.

Saputo won’t increase its bid again before its offer closes on Jan 10., it said as it extended from Dec. 20 the deadline for shareholders to accept the proposal. Warrnambool rose 2 cents to close at A$9.27.

Shareholders will get A$9.40 a share if Saputo obtains more than 75 percent of Warrnambool shares, the Canadian company said in the statement. It reiterated a previous proposal to pay A$9.20 per share on taking greater than 50 percent of the Australian producer’s shares.

Orders Lifted

Saputo holds 17 percent of Warrnambool, while Bega has 18 percent and Murray Goulburn holds 17 percent, according to data compiled by Bloomberg.

Australia’s Takeovers Panel lifted orders preventing Saputo from processing shareholder acceptances after it made undertakings to amend its proposals, the regulator said today in a statement.

Murray Goulburn, Australia’s biggest milk processor, had asked the regulator to intervene over Saputo’s revised Nov. 25. offer, under which Warrnambool dropped plans to pay shareholders special dividends linked to the deal.

That proposal had "put into place arrangements that were complex, created uncertainty and were most undesirable," the panel said in its statement.

Warrnambool’s board has recommended Saputo’s offer to shareholders.

 

Latest News

Success is All in the Details at Kansas Dairy Development
Success is All in the Details at Kansas Dairy Development

Kansas Dairy Development provides temporary housing for up to 80,000 head of cattle — from a few days old to springers nearly ready to calve. Their formula for success is all in the details.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company
Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company

Travel to the rolling hills of Pennsylvania, and you’ll meet Hayley and Stephanie Painter who not only made the Forbes 30 under 30 list, but have also created one of the fastest growing yogurt company in the U.S.

"Boring" Technology Will Reshape Dairy Over the Next 10 Years
"Boring" Technology Will Reshape Dairy Over the Next 10 Years

Once a technology becomes a boring experience it means it has become proven, well-adopted, and easy to utilize. There are three "boring" technologies silently shaping the industry.

Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards
Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards

World Dairy Expo is delighted to announce the recipients of the 2024 Expo Recognition Awards. These individuals have made remarkable contributions to the dairy industry and their communities.

Meat Institute: Properly Prepared Beef is Safe to Eat; HPAI is not a Food Safety Threat
Meat Institute: Properly Prepared Beef is Safe to Eat; HPAI is not a Food Safety Threat

According to the Centers for Disease Control and Prevention (CDC) and USDA food safety experts, properly prepared beef is safe to eat and is not a food safety risk to humans.