Murray Goulburn Co-operative (MG) and Bega Cheese have revised their takeover offers for Warrnambool Cheese & Butter (WCB).
As per the terms, MG offered to pay A$9 per share of WCB, valuing the Victorian dairy firm at A$505m.
Bega Cheese also raised its bid to 1.5 shares and A$2 ($1.87) cash, bringing the offer value to A$494.1m as of 13 November; this offer is unconditional, and could reportedly face scrutiny from the competition authorities.
MG said that it will be fund the deal through secured debt facilities from its existing financiers National Australia Bank Limited (NAB), Australia and New Zealand Banking Group Limited (ANZ) and Westpac Banking Corporation (WBC).
MG managing director Gary Helou said, "MG remains firmly committed to acquiring WCB. A combined MG and WCB will create a globally competitive dairy food company which will deliver many opportunities for Australian dairy farmers and their communities.
"WCB suppliers joining the enlarged co-operative will benefit from co-operative ownership focused on maximising farm-gate milk prices, including being able to participate in any future changes to MG's capital structure that may arise as a result of the review that was recently announced to MG suppliers."
The company expects to dispatch its bidder's statement containing detailed information relevant to the revised offer to all WCB shareholders by early December 2013.
Lazard is acting as financial adviser to MG, while Herbert Smith Freehills is offering legal advisory services.
Canadian firm Saputo, which made its initial offer in October, has recently increased its takeover bid by 14% to A$449m.
Earlier this week, Saputo's bid received approval from the Australian Treasurer Joe Hockey.
Image: Australian dairy WCB takeover contested with revised bids. Photo courtesy of Suat Eman / FreeDigitalPhotos.net.
