Australian dairy cooperative Bega Cheese plans to sell its 18.8% share in Warrnambool Cheese and Butter (WCB) to Canadian dairy firm Saputo.
Bega will receive between $94.7m to $101m, based on Saputo's relevant interest at the close of its offer for WCB on 22 January 2014.
The acquired stake will add to Saputo's existing WCB share of 26.4%, bringing its total holding in Australian firm to 45.2%.
The sale offers Bega with substantial profit of up to $68.2m and ends its strategic relationship with WCB, which began in 2010 when the latter raised $37m capital.
The company plans to use the proceeds to pursue a number of strategic business opportunities, which will ensure its reputation for being a leader in manufacturing milk pay rates and delivering stable and growing returns to shareholders.
Bega Cheese executive chairman Barry Irvin said, "Bega Cheese's investment in Warrnambool Cheese & Butter has been a resounding success for both companies, enabling WCB to pay down debt in a time of need and positioning the company for the future.
"Bega Cheese's initial investment in WCB and subsequent takeover offer for the company has created significant value for both companies' shareholders."
In September 2013, Bega offered A$5.75 per share to takeover Warrnambool; however, it revised the bid in November to 1.5 of its shares and A$2 cash.
