Saputo Dairy Australia – a wholly owned subsidiary of Saputo Inc – has launched an all cash off-market offer of $8.85 per shares for all the issued shares in Warrnambool Cheese and Butter Factory Company (WCB) in which it does not already have a relevant interest.
The offer – conditional on Saputo acquiring a relevant interest in at least 90% of Warrnambool shares – represents a 24.8% premium to Warrnambool’s closing price of $7.09 per share on 27 January and a 30% premium to the company’s six month volume weighted average share prices to 27 January of $6.81.
WCB’s Independent Board Committee (IBC) has confirmed Saputo’s approach and described the offer as “fair and reasonable”.
“The IBC has carefully considered the Offer with the assistance of its advisers, and unanimously recommends that, it the absence of a superior proposal and subject to an independent expert counselling that the Offer is fair and reasonable, WCB shareholders accept the Offer,” reads WCB’s statement to the ASX.
Saputo is the fourth largest dairy processor in Australia offering a variety of cheeses, butter and butter blends, milk and cream as well as dairy ingredients, including milk powder and whey protein.
Warrnambool produces, markets and distributes a wide array of quality dairy products, all made from Australian milk sourced from farms in Victoria and South Australia.