Saputo triumphs in WCB bidding war

Saputo has gained a majority stake in Warrnambool Cheese and Butter (WCB), acquiring 52.07% of the company’s shares.

Saputo initially offered WCB shareholders $9.00 cash per share but promised to pay $9.20 per share if it acquired more than 50% of all WCB shares, $9.40 if it acquired more than 75% and $9.60 if it acquired more than 90%.

The Canadian company will honour these terms and has extended the offer period by two weeks to 4 February to give shareholders a chance to take up the offer. Shareholders who have already accepted the offer and received payment of $9.00 per share will be paid the $0.20 increase by 30 January.

In an ASX statement, Saputo urged WCB shareholders to “act now and accept Saputo’s highly attractive offer”.

Analysts are waiting to see what Murray Goulburn (MG) - which holds a 17.7% stake in WCB - will do following Saputo’s announcement. Some predict that MG will withdraw its offer and sell its stake in order to take advantage of Saputo’s offer.