Bids are believed to be closing this week for Burra Foods after the business was put up for sale last year through adviser Moelis and ANZ Bank.
Saputo, Fonterra and some Chinese parties are expected to be among the interested parties.
However, it is now thought that they might want to divest part of the business — possibly about 75 per cent.
Japan’s Itochu Corp is counted as a minority shareholder, and it is now understood that the majority owners, the Crothers family in Victoria, has the desire to retain its stake.
Last year there were aspirations of achieving a price for the business as high as $375m.
Burra exports about 200 million litres of milk a year and sells at least 230 million litres, achieving double-digit margins and strong earnings growth in recent years.
Annual revenue stands at about $230m to $240m, while Burra makes at least $25m in earnings before interest, tax, depreciation and amortisation annually.
Victoria’s Burra Foods recently snapped up the Gippsland assets of United Dairy Power.