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”.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.