Lion 'protecting' interests in WCB
Lion, a subsidiary of Japan's Kirin and Australia's third-largest dairy processor, is a potential kingmaker as Murray Goulburn, Bega Cheese and Canada's Saputo fight a $500 million battle for WCB.
In his first public comments on Lion's intentions since the company seized its WCB stake, Mr Irvine said the shareholding was about strengthening Lion's relationship with WCB "in this uncertain period".
"We already have a relationship with them [WCB] through everyday cheese, and that [stake] means we have a seat at the table really to make sure those relations we currently have are looked after during any potential transfer of ownership."
WCB produces the majority of Lion's 12,000 tonnes per annum of everyday cheese under brands such as Coon and Cracker Barrel at its Allansford site near Warrnambool.
Asked whether Lion would increase its stake, Mr Irvine said: "I don't think so, we're pretty happy where we are."
He also rejected reports that Lion was considering selling some of its struggling dairy assets, including National Foods. "I think this stake ... in WCB is a demonstration of our commitment to our future plans," he said.
His comments come as the takeover battle for WCB plays out in front of both the Takeovers Panel and the Australian Competition Tribunal.
Saputo, which has 13.7 per cent of WCB, has been prevented from processing acceptances for its $9 a share cash offer as the panel investigates claims from Murray Goulburn that its revised bid represents a decline in implied value and contravenes the truth-in-takeovers provision.
The claims centre on WCB's withdrawal of plans to pay two fully franked dividends under Saputo's revised offer.
Murray Goulburn, which owns 17.7 per cent of WCB, kicked off its regulatory approval process through the ACT in Melbourne on Monday. Tribunal president John Mansfield indicated Murray Goulburn could get merger approval by February 28, putting the timetable closer to three months rather the six-month maximum.
Frequently Asked Questions about this Article…
Lion, a subsidiary of Japan's Kirin and Australia's third-largest dairy processor, holds a 10% stake in WCB. This makes Lion a potential kingmaker in the $500 million takeover battle involving Murray Goulburn, Bega Cheese, and Canada's Saputo.
Lion's chief executive, Stuart Irvine, stated that the stake in WCB is about strengthening Lion's relationship with WCB during this uncertain period. The stake ensures Lion has a seat at the table to protect its cheese business interests.
According to Stuart Irvine, Lion is content with its current 10% stake in WCB and does not plan to increase it.
Stuart Irvine rejected reports that Lion was considering selling its struggling dairy assets, including National Foods. He emphasized that the stake in WCB demonstrates Lion's commitment to its future plans.
WCB produces the majority of Lion's 12,000 tonnes per annum of everyday cheese under brands such as Coon and Cracker Barrel at its Allansford site near Warrnambool.
Saputo, which holds 13.7% of WCB, has been prevented from processing acceptances for its $9 a share cash offer as the Takeovers Panel investigates claims from Murray Goulburn regarding a decline in implied value and contravention of the truth-in-takeovers provision.
The claims against Saputo's revised offer center on WCB's withdrawal of plans to pay two fully franked dividends under the revised offer, which Murray Goulburn argues represents a decline in implied value.
Murray Goulburn, which owns 17.7% of WCB, has started its regulatory approval process through the Australian Competition Tribunal. Tribunal president John Mansfield indicated that Murray Goulburn could receive merger approval by February 28, shortening the expected timeline to closer to three months.
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