Reuters Australia
National Foods lodges bid for Dairy Farmers-source
Monday July 21, 05:37 PM
(Adds details)
MELBOURNE, July 21 (Reuters) - National Foods, the Australian food producer owned by Japan's Kirin Holdings 2503.T, has lodged a final bid for Australian dairy producer Dairy Farmers, a source familiar with the situation said on Monday.
Analysts have said the deal for Dairy Farmers, which makes Dairy Farmers brand milk, Coon cheese and Ski yoghurt, could be worth A$800 million to A$1.0 billion ($780-$975 million). The group is owned by some 2,000 Australian farmers.
National Foods is bidding in partnership with Australia's Warrnambool Cheese and Butter Ltd (ASX: WCB.ax) .
A spokesman for National Foods declined to comment, citing confidentiality agreements. Dairy Farmers declined to comment on bidders, but said the process reviewing a potential sale or listing was continuing.
"The Dairy Farmers liquidity options process continues to gather momentum, with a high level of interest from a range of local and international players," a spokesman said.
He added that any vote by the farmer shareholders would happen towards the end of 2008, following a board recommendation.
Among other potential bidders, Italian food firm Parmalat PLT.MI said in April it was interested in Dairy Farmers' assets, while Canadian dairy products company Saputo SAP.TO declined to comment last month.
Parmalat did not return calls seeking comment, and Saputo could not be reached.
The competition regulator, the Australian Consumer and Competition Commission, is due to rule on July 24 on applications by National Foods and Parmalat.
National Foods has already proposed to sell two milk processing plants and licence out certain brands of milk to help win competition clearance.
The ACCC would not have to rule on any bid by Saputo because it does not have large operations in Australia. However, Saputo would require government clearance from the Foreign Investment Review Board.
New Zealand dairy cooperative Fonterra withdrew a solo bid for Dairy Farmers last month, but has had discussions with National Foods about potentially acquiring some businesses if National Foods is successful. ($1=A$1.03) (Reporting by Victoria Thieberger)
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