Saputo extends WCB offer as 'misleading' claim examined
Saputo is locked in a $500million-plus takeover battle for control of WCB with Australia's biggest dairy exporter Murray Goulburn Co-Operative and NSW-based Bega Cheese.
Saputo has been barred from processing acceptances for its offer after Murray Goulburn made a claim to the Takeovers Panel that the Montreal-based group had contravened the truth-in-takeovers provision.
The claim centres around the withdrawal of two fully franked dividend payments to shareholders from WCB in Saputo's latest bid.
Murray Goulburn claims Saputo's offer is 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 filings lodged on Friday morning, Saputo's interest has jumped from 14.7 per cent to 15.7 per cent of WCB.
If the Takeover Panel lifts its interim orders, those new acceptances can be formalised and processed.
The Takeover Panel is expected to make a decision on the claim within the next few days.
Frequently Asked Questions about this Article…
Saputo has extended its $9-a-share cash takeover offer for Warrnambool Cheese & Butter (WCB) as it awaits a ruling from the Takeovers Panel on a misleading claim issue.
The delay is due to a claim by Murray Goulburn that Saputo contravened the truth-in-takeovers provision, which is currently being examined by the Takeovers Panel.
The claim centers around the withdrawal of two fully franked dividend payments to WCB shareholders in Saputo's latest bid, which Murray Goulburn argues affects the offer's value.
If the Takeovers Panel lifts its interim orders, Saputo will be able to formalize and process new acceptances, potentially increasing its stake in WCB.
Murray Goulburn claims that with the tax benefits of franking, Saputo's offer could be worth $9.56 for some shareholders.
Yes, Saputo's relevant interest in WCB has increased from 14.7% to 15.7% despite the current ban on processing acceptances.
Saputo offers an additional 20 cents per share if it reaches 50.1% ownership of WCB.
The Takeovers Panel is expected to make a decision on the claim within the next few days.
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