Saputo extends Warrnambool offer while Takeovers Panel ponders
Saputo is locked in a $500 million-plus takeover battle for control of WCB with Australia's biggest dairy exporter Murray Goulburn and NSW-based Bega Cheese.
Saputo has been barred from processing acceptances for its offer after Murray Goulburn made a submission to the Takeovers Panel claiming the group had contravened the truth in takeover provisions. The claim centres around the withdrawal of two fully franked dividend payments to shareholders from WCB in Saputo's latest bid. Murray Goulburn says Saputo's offer was worth $9.56 for some shareholders with the tax benefits of franking and Saputo may be compelled to raise its bid to $9.56.
Saputo's revised bid, which was extended to December 20 on Friday, is unconditional at $9 a share in cash plus an additional 20¢ a share if it gets to 50.1 per cent of WCB.
Despite the ban on processing acceptances and paying shareholders, Saputo's relevant interest in WCB continues to rise. According to the latest filings, Saputo has jumped to 15.7 per cent of WCB.
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Saputo has extended its cash takeover offer for Warrnambool Cheese & Butter at $9 a share. Additionally, if Saputo acquires 50.1% of WCB, shareholders will receive an extra 20 cents per share.
Saputo extended its offer as it awaits a ruling from the Takeovers Panel regarding allegations that it misled shareholders with its revised bid.
The Takeovers Panel is reviewing claims that Saputo contravened truth in takeover provisions by withdrawing two fully franked dividend payments in its latest bid.
Besides Saputo, Australia's largest dairy exporter, Murray Goulburn, and NSW-based Bega Cheese are also involved in the takeover battle for Warrnambool Cheese & Butter.
Murray Goulburn claims that Saputo's offer misled shareholders by withdrawing two fully franked dividend payments, which affected the offer's value for some shareholders.
Despite the ban on processing acceptances, Saputo's relevant interest in Warrnambool Cheese & Butter has increased to 15.7% according to the latest filings.
If the Takeovers Panel rules against Saputo, the company may be compelled to raise its bid to $9.56 per share to account for the tax benefits of franking that were initially included.
Saputo's revised bid for Warrnambool Cheese & Butter has been extended to December 20.
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