Saputo intends to acquire Warrnambool stake

Saputo Dairy Australia (Saputo) is planning to acquire shares of Australian dairy firm Warrnambool Cheese and Butter (WCB) Factory.

Saputo is willing to make an all cash off-market takeover offer of A$8.85 ($6.69) a share for all the issued shares. It currently holds 88.02% of the outstanding Warrnambool shares.

The company has already received approval from the Australian Foreign Investment Review Board (FIRB) in respect to the offer, which is only conditional if it acquires at least 90% of Warrnambool shares on issue during, or by the end of, the offer period.

FIRB also noted that the Warrnambool shareholders should have a clear understanding of Saputo’s intentions in making their decision on whether or not to accept the offer.

Saputo Dairy Australia will fund the acquisition from available cash on hand and credit facilities, and the transaction is expected to be completed by March.

Warrnambool claims that its dairy products are made from Australian milk, which is sourced from dedicated farmer partners in Victoria and South Australia.