Dairy processor Murray Goulburn has released its half-year results with a warning that if the pending sale of the company does not go ahead, and if it keeps losing milk supply, it could face a withdrawal of creditor support.
Last October, Canadian dairy giant Saputo made a $1.3 billon offer for the company.
This offer is currently being reviewed by the Australian Competition and Consumer Commission (ACCC) which is expected to make a recommendation on 1 March 2018. The sale is also reliant on approval from the Foreign Investment Review Board, which is expected to make a ruling after the ACCC announcement.
Murray Goulburn has continued to lose milk supply, down almost 30 per cent on the previous year.
If the sale of the company to Saputo goes ahead, Murray Goulburn expects to maintain its forecast milk price of $5.60 per kilogram/milk solids, which includes a 40 cent step up for the period July to October.
If both ACCC and the Foreign Investment Review Board approve the sale, an extraordinary meeting of shareholders will need to take place to vote on the offer.
(From ABC News - 7 February 2018)