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Warrnambool Cheese & Butter Factory Co (ASX:WCB) has recommended a takeover bid from Saputo Inc, after rejecting an offer from Bega Cheese Limited (ASX:BGA).
WCB says it’s entered into a takeover bid implementation deed with Saputo, which will make an all cash off-market takeover offer of $7 per share for all shares on issue.
The companies have agreed WCB may declare and pay fully franked special dividends of up to a maximum of $1.31 per WCB share.
The announcement comes after WCB directors last month unanimously recommended shareholders reject Bega's offer of 1.2 Bega shares and $2 cash for each WCB share, saying the offer was inadequate.
The offer is subject to conditions including Foreign Investment Review Board approval.
Warrnambool Cheese & Butter Factory delivered a full year net profit of $7.5 million.
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