Saputo this afternoon upped its $8.85 per share bid price to $9.05 and declared its offer — which will close in just under a fortnight — unconditional.
Saputo currently owns 88 per cent of WCB and there is speculation Japanese-owned Lion Dairy and Drinks Group its set to accept the latest offer and part with its minority 10.2 per cent shareholding in the Victorian-based group.
Sandon last week wrote to WCB calling for the offer to be revised to include a fully-franked dividend component, claiming Saputo had let down minority shareholders by not including a dividend as part of the takeover consideration.
WCB is believed to have made contact with Sandon following its letter. But the latest move by Saputo is unlikely to appease the activist manager.
Sandon has estimated WCB could pay a special fully-franked dividend of at least $2.27 per share, with approximately $0.97 per share of franking credits attached.
It has claimed the value to Australian taxpaying shareholders could be as high as $9.82 per share when including the value of the franking credits.
Funds managed by Sandon Capital together represent the third largest bloc of shares in WCB.
Source: The Australian
Link: http://www.theaustralian.com.au/business/markets/saputo-moves-to-mop-up-wcb-with-sweetened-offer/news-story/5f45a950c22513e5a45605f1478bc2cd
