Warrnambool tasty target

Bega Cheese has made a takeover bid for Warrnambool Cheese & Buttery Factory Company at an implied premium to its current share price.

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.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles