Oct 27 (Reuters) - MG Unit Trust (MGC) Announces MG sale to...

Oct 27 (Reuters) - MG Unit Trust (MGC)

• Announces MG sale to Saputo
• Murray Goulburn Co-Operative entered into a binding agreement with Saputo Dairy Australia Pty Ltd
• Sale to Saputo of all of MG's operating assets and operating liabilities for A$1,310 million
• Transaction includes MG milk supply commitments for active MG suppliers totalling approximately $114 mln
• Estimated initial distribution of about $0.75 per share/ unit to be paid shortly after completion of deal
• MG will step up FY18 FMP by $0.40 per KGMS to $5.60 per KGMS for milk supplied from 1 November 2017
• Murray Goulburn will retain all of assets and liabilities associated with MG Unit Trust
• Will also retain part of transaction proceeds
• estimated net value per share/unit of $1.10 to $1.15 after working capital adjustment and other costs
• Transaction is currently expected to complete in first half of 2018
• Directors of MG unanimously recommend shareholders vote in favour of transaction
• Transaction is subject to customary conditions including ACCC and FIRB approvals