Saputo to take remaining share of WCB

Posted by Andrea Hogan on 30th January 2017

Canadian dairy company, Saputo, will be acquiring the remaining share in Warrnambool Cheese and Butter (WCB) it does not already own.

Saputo has owned 88.02 per cent of WCB since 2014 when it acquired dairy processor, Murray Goulburn’s, share of the business.

Other existing shareholder, Lion, refused to sell its 10 per cent share in WCB in 2014.

At the time, it was speculated by some analysts that Lion did not sell its share in WCB as it would have likely wanted to preserve its working relationship with the business. WCB was manufacturing a number of dairy products for Lion in 2014, but Lion has since sold some of these brands to WCB.

Saputo says it is offering AUD 8.85 per share and will only proceed with the share acquisition if it can get at least 90 per cent of shares.

The Australian Foreign Investment Review Board has already approved Saputo’s offer.

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