CANADA'S Saputo has secured a more than 52 per cent stake in Warrnambool Cheese and Butter, sparking an extension of its offer to February 4 and a price rise.
With Saputo now holding a relevant interest in WCB of 52.7pc, its offer price for WCB also rises from $9 to $9.20 cash per WCB share.
Its offer for the dairy processor was due to close at 7pm AEDT tonight.
However, under the Corporations Act 2001, the offer period has been automatically extended to February 4 due to Saputo's share in WCB rising to more than 50pc and the increase in offer price occurring within the last seven days of the scheduled close of the offer period.
Saputo's offer will now close at 7pm AEDT Tuesday, February 4.
Saputo increased its stake from 47.85pc to 52.7pc after it secured more than 2.7 million WCB shares yesterday.
If Saputo obtains a relevant interest in WCB greater than 75pc, it will increase is offer price again by 20 cents to $9.40/share.
The price rises another 20 cents to $9.60/share if it obtains a more than 90pc stake in WCB during the offer period.
Saputo's success in gaining a majority share in WCB was announced to the ASX this morning.
In reaction to the news, Saputo's rival in the takeover bid for WCB, Murray Goulburn, released a statement saying it would now "commercially assess this development, including in relation to MG's 17.7pc shareholding in WCB".
"MG will not be making any further media statements until such time as a decision has been made and relevant stakeholders advised," the statement said.
As previously reported by FarmOnline, Bega Cheese last week sold its 18.8pc in WCB to Saputo.
WCB shares were trading at $9.45/share at 11am AEDT today.