Saputo lifts Warrnambool stake

Saputo Inc has again lifted its stake in takeover target Warrnambool Cheese and Butter Factory Ltd, cementing its standing as the biggest shareholder in the western Victorian dairy producer.

In a statement to the Australian Securities Exchange, Warrnambool said Saputo had increased its stake to 21.392 per cent, from 20.141 per cent.

Only yesterday, Saputo was revealed to have lifted its holding in Warrnambool to 20.141 per cent from 17.923 per cent.

In a subsequent statement, Saputo confirmed earlier DataRoom reports that it would extend its $9 a share, or $504 million, takeover offer for Warrnambool.

Saputo said it had extended the offer period  to close at 1900 AEDT on January 22.

"Momentum has been building in the rate of acceptances over recent days, and we believe that many of the remaining shareholders were waiting until the offer was last and final, so they should accept now," Saputo chief executive officer Lino Saputo Jr said.

“If shareholders want to be paid their cash, and paid quickly, they must accept our offer and make sure we receive their acceptance before the offer expires."

DataRoom reports the Canadian group risked  incurring the wrath of the Takeovers Panel a second time by waiting to extend its offer until the last minute.

Saputo's offer is final.

Saputo is vying with Australian dairy co-operative Murray Goulburn for control of Warrnambool.

Murray Goulburn's bid of $9.50 is conditional upon it obtaining more than 50 per cent of Warrnambool shares.

Murray Goulburn's offer is subject to no objection by the Australian Competition and Consumer Commission (ACCC) or the granting of authorisation by the Australian Competition Tribunal.

Murray Goulburn has a 17.7 per cent stake in Warrnambool.

Bega Cheese, which initiated the takeover battle for Warrnambool but pulled out of the contest when its bid lapsed on December 20, holds 18.8 per cent of Warrnambool.

Japanese-controlled food and beverages company Lion has about 10 per cent.