Warrnambool Cheese & Butter Factory’s Co
(ASX:WCB) directors have unanimously recommended shareholders reject the takeover offer from Bega Cheese Limited
(ASX:BGA).
WCB says Bega's offer is inadequate and does not reflect fair value for WCB shares.
The WCB boards says the offer does not fully reflect the strategic value of WCB to Bega Cheese and the potential synergies are materially higher than set out in Bega's bidder's statement.
Bega offered 1.2 Bega shares and $2 cash for each WCB share.
WCB also says the highly opportunistic timing of the offer fails to reflect the value of recent WCB business improvements, while exploiting recent gains in Bega's share price.
Warrnambool Cheese & Butter Factory delivered a full year net profit of $7.5 million.
