Saputo Dairy is bidding to take the rest of Warrnambool Cheese and Butter Factory it doesn’t already own.
The $8.85 per share offer, valuing Warrnambool at $682 million, is almost 25% higher than Friday’s $7.09 closing price.
The Canada-based Saputo already has 88.02% of Warrnambool shares.
Warrnambool Cheese and Butter, the oldest dairy processor in Australia, is one of the largest employers in south-west Victoria, with 650 staff at sites in Allansford, Mount Gambier and Port Melbourne.
Saputo says there’s very limited trading in Warrnambool shares.
“This offer is a rare opportunity and potential liquidity event for WCB (Warrnambool) shareholders who wish to exit their investment,” says Saputo.