Saputo Inc hiked its offer for Australia-based Warrnambool Cheese & Butter Factory Co to AUD515 million (USD472 million). The Canadian milk processor's bid trumped previous offers from two other Australian dairy companies, according to a report published on Reuters today.
Under the terms of the offer, Saputo will pay USD9.20 cash per share, from a previous USD9 per share. This is dependent on the condition that the company gains over 50% of the Australian dairy producer. The said offer beats a AUD9 bid from dairy firm Murray Goulburn Cooperative Co. Saputo's offer also beat a cash and share bid from Bega Cheese Ltd, the report explained.
In a statement, Warrnambool said Saputo's latest bid was "simpler, more certain and potentially more valuable" than the previous. The company's board of directors recommended the offer to shareholders, said the report.
Meanwhile, Warrnambool's shares went down 1.6% to close at AUD9.05 on Friday in Sydney, Bloomberg reported.
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