Murray Goulburn, the Victorian dairy co-operative, is considering a partial listing on the ASX according to a report in The Australian.
Reportedly Murray Goulburn, which is Australia’s biggest dairy company, would list a shareholder fund on the exchange to raise capital for an increased bid for Warrnambool Cheese & Butter Company.
Warrnambool Cheese & Butter Company is currently the subject of a three-way takeover tussle, with Saputo and Bega Cheese. MG would be able to increase its offer to $10 per share, according to the report.
It would also lower its debt ratio, which the WCB board has said is too high.
The fund would allow units to be traded while ensuring dairy farmers remained in control of the un-listed, private co-op.
The Australian’s report says the board of directors will make a decision tomorrow on whether to go ahead with the on-market capital raising.
There’s more at The Australian.