Canadian processor Saputo is offering Warrnambool Cheese and Butter shareholders $8.85 per share in a bid to take full ownership.
Saputo currently owns 88.02% of WCB. If it reaches 90% ownership, it will be able to compulsorily acquire the remaining shares.
Rival processor Lion owns 10% of WCB shares, with small shareholders holding the rest.
In an email to shareholders, WCB Company Secretary, Paul Moloney, said WCB reccomended that shareholders accept the offer.
Mr Moloney said the offer represents a premium to recent trading prices, including:
- A 24.8% premium over the closing price of $7.09 per WCB share on January 27, the last trading day prior to the announcement of the Offer; and
- A 30% premium over the six month volume weighted average price of WCB shares to January 27.
The offer is conditional on Saputo receiving a relevant interest in at least 90% of WCB shares. It has already received Australian Foreign Investment Review Board approval.