Canadian dairy giant Saputo has further increased its takeover offer for Warrnambool Cheese and Butter amid a three-way bidding war.
Saputo will lift its offer from $9 a share to $9.20 a share if more than 50 per cent of Warrnambool’s (WCB’s) shareholders accept the bid.
It has also removed all conditions from the offer.
In a statement, Warrnambool chairman Terry Richardson says the board has unanimously backed the “improved and simplified” bid and recommends its shareholders accept it, in the absence of a better offer.
“Saputo’s amended offer is now very straight forward and compelling: from today it is an unconditional offer of $9 cash per share with a further 20 cents cash per share if Saputo achieves an interest in greater than 50 per cent of
WCB shares,” Mr Richardson said.
“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.”
Australian dairy firms Murray Goulburn and Bega Cheese are also vying for the south-west Victorian firm, which is Australia’s oldest dairy processor.
The board of WCB is recommending shareholders reject both of those offers.