Murray Goulburn ups WCB bid to $9.50

The bidding war for Warrnambool Cheese & Butter (WCB) continues, with Murray Goulburn (MG) increasing its takeover offer  to $9.50 cash per share, or $533 million in total.

The company says its revised offer “represents compelling value for WCB shareholders [and] delivers them a demonstrably superior value outcome relative to all other competing proposals”.

Saputo revised its offer earlier this week, offering $9.00 cash per share, revoking its earlier offer of a fully franked special dividend, but offering $9.20 per share if it is able to acquire more than 50% of WCB.

MG says it “still wishes to explore the potential of WCB paying special dividends under its Revised Offer in order to deliver franking credit benefits to some shareholders”.

“We urge WCB shareholders to seriously consider the benefits of MG’s Revised Offer - this is an important decision that will have significant ramifications for the future of the Australian dairy industry as a whole,” MG said in an ASX announcement.

“As key stakeholders within this industry we encourage WCB shareholders to take a long-term view when considering the future of your company and the outlook for the Australian dairy industry.”

MG expects to lodge its application to the Australian Competition Tribunal before the end of November. The company’s offer is dependent on there being no objection by the Australian Competition and Consumer Commission (ACCC) and on being granted authorisation by the tribunal.