A small $10 million enticement to shareholders in Warrnambool Cheese and Butter (WCB) with the seemingly preferred bidder Saputo of Canada offering to pay accepting shareholders more if it gets to 50% of its target.
Saputo yesterday said it would increase its offer for Australia’s oldest-listed dairy processor to $9.20 cash, or about $515 million, on the condition Saputo gets over the 50.1% mark.
But despite that apparent largesse, Saputo, which has an unconditional offer of $9 a share on the table, is facing a tough task to secure a majority stake in WCB, with rival bidders Bega (BGA) and Murray Goulburn owning about 35% of Warrnambool, and Japanese food conglomerate Kirin another 10% through its Lion Nathan arm in Australia.
The 20c sweetener has replaced a 46c dividend that WCB was going to pay shareholders if Saputo gained 50.1% of the company.
BGA Vs WCB YTD – The takeover battle of 2013 rolls on
In a statement to the ASX, Warrnambool directors said they had revoked its intention to pay the 46c dividend and another payment of 85c if Saputo obtained 90% of the company, saying they were ‘‘no longer needed’’.
WCB said the amended Saputo offer was more simplified and superior to the rival bids.
But it has no chance of winning without a change of heart from two of its suitors in Bega and Murray Goulburn.
Warnambool shares edged up 18c or 2% to close at $9.23 after the promise of the 20 cents a share bonus.
