Warrnambool recommends revised Saputo offer

Warrnambool Cheese and Butter announced this morning that it has agreed with Canadian dairy processor, Saputo's to further amend the terms of its previously announced offer of $9.00 cash per share.

The amended terms state that Saputo will increase its offer consideration to $9.20 cash per share if Saputo achieves a relevant interest in WCB shares of greater than 50 percent during the offer period. The increase will be available to all shareholders regardless of when they accept including those who have already accepted the Saputo offer.

Another amended term is that the Saputo offer is now unconditional. Shareholders that accept Saputo’s offer will be paid $9.00 cash within five business days of acceptance with the potential price increase of $0.20 per share paid out should Saputo reach its 50 percent relevant interest threshold.

As part of the revision, Warrnambool is revoking its previously announced intention to declare an initial fully franked special dividend of $0.46 per share and an additional permitted dividend of $0.85 per share. The intention of which was subject to Saputo achieving a relevant interest of greater than 50 percent and 90 percent respectively. (These special dividends would have been paid by WCB and deducted from the $9.00 offer price payable by Saputo.)

Chairman of Warrnambool, Terry Richardson stated that all WCB directors and executives intent to accept this revised Saputo offer.

"Saputo's amended offer is now very straight forward and compelling: from today it is an unconditional offer of $9.00 cash per share with a further 20 cents cash per share if Saputo achieves an interest in greater than 50% of WCB shares,” said Richardson.

“If this price increase applies, all shareholders will receive the benefit of the price increase regardless of when they accept. Now that the offer is unconditional, all WCB directors and WCB executives intend to accept the amended Saputo offer without delay."

 WCB’s directors have also reaffirmed their previous recommendations that shareholders reject both Bega’s and Murray Goulburn’s proposed offers.


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