Burra Foods may expand

KORUMBURRA milk company Burra Foods could expand into Victoria’s Western District.
The company may assess whether to submit an offer to buy Murray Goulburn’s Koroit milk plant.
Canadian dairy company Saputo will look to sell the Koroit plant in order to obtain Australian Competition and Consumer Commission (ACCC) clearance for its purchase of Murray Goulburn.
Burra Foods managing director Grant Crothers said, “I’m not in a position to comment regarding the commentary of others on Burra’s possible expansion.
“We, as I’m sure many others, were interested to learn of the ACCC’s guidance regarding MGC Koroit. We regard it as a high quality asset with considerable processing capacity. Like other complementary assets when a sale process is run, we will consider the opportunity and decide on suitability and affordability.”
The sale of Murray Goulburn will remain subject to an ordinary resolution of MG’s voting shareholders, which is expected to occur at an extraordinary general meeting on Thursday, April 5.
If the ACCC has not provided clearance for the sale by April 4, MG will postpone the meeting.
Upon revision, MG has increased its estimate of the net value per share/unit which shareholders could receive as a result of the sale. The estimated net value is now $1.15 to $1.20, an increase of five cents.
As a result, the initial distribution to be paid shortly after completion of the sale has been increased by five cents to $0.80 per share/unit.
MG currently expects the sale to complete on May 1

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Posted by Tayla Kershaw on Mar 14 2018. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry