Canadian dairy giant Saputo has again sweetened its takeover bid for Warrnambool Cheese and Butter (WCB), after the involvement of the Takeovers Panel.
Saputo has raised its offer due to concerns from the Takeovers Panel about changes made to Saputo’s bid in late November.
On November 25, Saputo maintained its offer of $9.00 for each WCB share and said it would lift the offer to $9.20 if it obtained more than 50 per cent of WCB’s shares.
But Saputo also announced its intention to revert to a takeover consideration which did not include franked dividends and associated franking credits.
WCB also announced on November 25 that it had revoked its previously stated intention to declare special dividends, with associated franking credits, subject to Saputo’s bid reaching certain thresholds.
On Tuesday, the Takeovers Panel said it was of the view that variations made to Saputo’s bid on November 25, and WCB’s revocation of its previous intention to declare special dividends, were unacceptable under the truth in takeovers policy.
But the panel declined to make a declaration of unacceptable circumstances because it had accepted undertakings from Saputo and WCB.
Saputo will lift its offer to $9.40 if it obtains more than 75 per cent of WCB shares, and to $9.60 if it surpasses the 90 per cent threshold.
The revised offer is final.
Saputo also extended the period of its offer to January 10.
Given Saputo’s undertakings, The Takeovers Panel has lifted interim orders made on November 29 preventing Saputo from processing acceptances of its takeover offer.
A Saputo spokesman said the company now had a well constructed final offer designed to reach a final resolution.
“In addition to its $9.00 cash offer, Saputo has introduced a three-tier offer price structure, designed to encourage acceptances,” the spokesman said.
The Murray Goulburn dairy co-operative and Bega Cheese, both major shareholders in WCB, are also vying for control.
Murray Goulburn applied to the Takeovers Panel for a declaration of unacceptable circumstances under the truth in takeovers policy.
Murray Goulburn is offering $9.50 for each WCB share, conditional upon it obtaining more than 50 per cent of WCB shares.
Murray Goulburn also requires no objection by the Australian Competition and Consumer Commission, or authorisation from the Australian Competition Tribunal on the grounds that a takeover of WCB by Murray Goulburn would be of national benefit.
Bega has made a final and unconditional offer of 1.5 Bega shares and $2.00 in cash per WCB share, which is currently valued at $8.53 per WCB share.
