Bega Cheese (BGA) has thrown a takeover bid for Warrnambool Cheese & Butter Factory Company (WCB) this morning.
Bega is offering $2 cash and 1.2 of its scrip for each Warrnambool share it does not own, which implies a takeover price of $5.78 based on Bega’s last traded price.
That would represent a bid premium of 28%, although Bega’s share price could fall in the wake of the announcement. Both stocks are in a trading halt and Bega already owns around 17% of Warrnambool.
The potential for such a deal had been highlighted in yesterday’s article on Eureka Report (see 10 stocks in takeover spotlight).
Bega is part of the Uncapped 100.