CANADIAN dairy giant Saputo is expected to stick to its guns and close its takeover offer for Warrnambool Cheese and Butter Factory on Friday as planned.
The group is facing off against rival suitor Murray Goulburn Cooperative for control of the Victorian business, but time is ticking away for shareholders to make a decision.
Saputo’s offer expires at 7pm on Friday, but the group says acceptances from retail investors must be sent off quickly to be received and formally lodged by the deadline.
The Canadian company will spend this week campaigning to Warrnambool Cheese’s household shareholders, many of whom are dairy suppliers, in a final attempt to win them over.
Saputo, which has built its stake in Warrnambool Cheese to just over 18 per cent, has offered $9 a share but will pay up to $9.60 under some circumstances.
It has offered an extra 20c a share if it secures more than 50 per cent of the target company. The bonus offer rises to 40c if Saputo reaches a 75 per cent stake and 60c if it acquires 90 per cent.
Murray Goulburn is offering $9.50 for each Warrnambool Cheese share, but it is conditional on the group obtaining more than half the target’s shares. Its offer also remains subject to approval from the Australian Competition Tribunal.
The co-operative now has a 17.7 per cent stake.
Source:Herald Sun