Saputo is showing no signs of backing down in the bidding war for Warrnambool Cheese and Butter, with the company proposing a revised, unconditional, all cash offer of $9.00 cash per share.
After accessing the offer, Warrnambool’s directors have unanimously recommended that WCB shareholders accept the revised offer in the absence of a superior proposal.
Saputo upped its offer to compete with revised offers from Murray Goulburn and Bega Cheese limited, both of which, Warrnambool says are inferior to the Canadian dairy processor’s proposal.
The revised Saputo offer values WCB at $505m on a fully diluted basis, equating to $9.00 cash per share, and Saputo intends to declare the revised offer as unconditional on 28 November 2013.
Saputo states that shareholders who accept the revised offer on, or before the 28 November 2013 will be paid their offer consideration on 5 December 2013.
“After careful consideration of the three proposals put to WCB over the past few days, the Board has decided to unanimously recommend the Revised Saputo Offer, in the absence of a superior proposal,” said WCB chairman Terry Richardson.
“The Board’s recommendation reflects the increased cash consideration offered by Saputo and the compelling timing and execution certainty that it provides particularly compared to the highly conditional Murray Goulburn Proposal.
“The Revised Saputo Offer is also superior and more certain than the final Bega part scrip, part cash Offer due to the inherent risks for WCB shareholders in accepting Bega shares”.