Bega Cheese, Ltd. announced it has agreed to sell its 18.8% stake in Australia’s oldest dairy, Warrnambool Cheese & Butter (WCB) to Canada’s Saputo Inc. Bega expects to receive between A$97.7 million and A$101 million for its interest. The sale will give Saputo control of 45.2% of WCB bringing it closer to majority ownership of the processor. Saputo has been embroiled in a months-long three-way battle with Bega Cheese and Murray Goulburn for control of the company. Murray Goulburn still owns 17.7% and is offering A$9.50 per WCB share on the condition it gets approval from Australia’s competition watchdog. Saputo has offered A$9.40 per share if it gains 75% control of the company. On January 15th WCB closed on the Australian Securities Exchange at A$9.40 suggesting that investors expect Saputo to gain a solid majority.
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