Bega Cheese plans to complete Tatura Milk merger by end of this year
Australia’s largest ASX-listed dairy company Bega Cheese has announced plans to complete a merger with Victorian-based dairy co-operative Tatura Milk Industries by the end of 2011.
Bega Cheese acquired 70 per cent of Tatura Milk Industries in 2007 for approximately A$39 Million.
By agreement made between the two companies in March 2011, Tatura Milk advised Bega Cheese it must be listed with the Australian Securities Exchange (ASX) in order to acquire the remaining shares from Tatura Milk Industries. Having been floated on the ASX in July 2011, Bega Cheese is now able to proceed with the merger.
Bega Cheese is investing A$4.7 million for the remaining 30 per cent of Tatura Milk’s shares, totalling A$42.7 Million.
Bega Cheese Executive Chairman Barry Irvin said that the merger will involve the issue of two Bega Cheese shares in exchange for each Tatura Milk redeemable preference share.
Mr Irvin said, “The Bega Cheese Board is pleased to proceed with the merger, as the full integration of the businesses should provide both operational and financial benefits to all stakeholders. Two of the Tatura Milk supplier directors will join the Bega Cheese Board following the merger.”