Bega Cheese Pockets More Than $60 Million Profit By Giving Up On Warrnambool Cheese

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Bega Cheese Limited will bank more than $60 million by abandoning its bid for Warrnambool Cheese & Butter.

It will now sell its 18.8% per cent of Warrnambool to Saputo Dairy Australia.

Bega Cheese will get between $94.7 million and $101 million from the share sale, delivering a profit of between $61.8 million and $68.2 million.

Canadian group Saputo has a $9 a share bid on the table for Warrnambool Cheese.

Another bidder, Victorian-based Murray Goulburn is awaiting a ruling from the Australian Competition Tribunal on its $9.50 bid.

Selling the shares was a better deal in cash returns for Bega than a successful takeover at the current bid value.

Bega directors say the cash will be used for “strategic business opportunities”.

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