Kirin Holdings buys 9.99% in Warrnambool to upset Saputo’s $430-mn buyout bid

Japanese brewer Kirin Holdings Co Ltd has acquired  9.99-per cent stake in Warrnambool Cheese and Butter Factory Company Holdings Ltd (WCB), a move that could potentially put a spanner in three separate takeover offers for the Australian dairy company.

Lion Co., a unit of Kirin Holdings, acquired the stake for an average price of A$9.19 each, which is above the offers tabled by Canada's Saputo Inc, Australia's Bega Cheese Ltd and Murray Goulburn Co-operative.

Sydney-based Lion said that it has ''acquired a shareholding of 9.99% in Warrnambool Cheese & Butter. Lion has enjoyed a close relationship with WCB over many years and WCB plays an important role in Lion's cheese business.

''Lion considers this stake a continuation and strengthening of this relationship,'' it added.

Lion owns iconic cheese brands such as Coon, King Island Dairy, Cracker Barrel, Tasmanian Heritage, Mersey Valley and South Cape most of which are produced by WCB, and packaged and sold by Lion.

Saputo, Canada's largest dairy producer, last week raised its bid to A$449 million ($430 million), trumping two other bids from WCB's two largest shareholders, Bega Cheese Ltd and Murray Goulburn. (See: Canada's Saputo raises bid for Australian milk processor Warrnambool)

Bega Cheese holds an 18-per cent stake in WCB, while Murray Goulburn, Australia's biggest milk processor, holds 17 per cent.

Listed on the Australian Stock Exchange, WCB is one of the largest milk processors in Australia, operating two manufacturing sites in South West Victoria and South Australia where it employs over 420 people.

It produces a range of dairy products for domestic and export markets. Its products include cheese, butter and butter blends, milk, cream and dairy ingredients.

For the financial years ended 30 June 2013 and 2012, WCB's consolidated revenues were CA$477 million and CA$479 million, respectively.