Saputo changes WCB offer

Saputo has convinced Warrnambool Cheese and Butter (WCB) to further amend the terms of Saputo’s previous offer of $9 cash per share.

Saputo will increase the offer consideration to $9.20 cash per share if it is able to acquire more than 50% of WCB.

Shareholders who accept Saputo’s offer will be paid $9 cash per share by Saputo within five business days of their acceptance. If the price increase of $0.20 per share applies, this will also be paid within five business days.

Saputo has revoked its offer of a fully franked special dividend of $0.46 per share and an additional permitted dividend of $0.85 per share.

“Saputo’s amended offer is now very straightforward and compelling: from today it is an unconditional offer of $9.00 cash per share with a further 20 cents cash per share if Saputo achieves an interest in greater than 50% of WCB shares,” said Terry Richardson, WCB Chairman.

“If this price increase applies, all shareholders will receive the benefit of the price increase regardless of when they accept. Now that the offer is unconditional, all WCB directors and WCB executives intend to accept the amended Saputo offer without delay.”

However, Murray Goulburn says the amended terms “represent a reduction in the implied value of Saputo’s offer to certain WCB shareholders” as the previously offered franking credit benefit of $0.56 per share has been taken off the table.

Murray Goulburn has urged WCB stakeholders not to make a hasty decision on Saputo’s amended offer.

“Murray Goulburn believes its own $9.00 cash per share offer continues to represent compelling value for WCB shareholders, is simple and straightforward, and delivers an Australian-owned and operated company with the scale, capacity, strength and momentum to service global growth opportunities,” the company said in a statement.

WCB’s directors have recommended that WCB shareholders accept the amended Saputo offer.