The Affco subsidiary gunning for control of Waikato-based dairy exporter Open Country Cheese will be able to call its takeover bid a success after it increases its scrip-only offer, Dairy Trust chairman Sam Lewis claims.
Lewis, who is also chairman of Affco, says Dairy Trust plans to liftits offer of 1.68 Dairy Trust shares per Open Country share to 1.75 shares, after which it would effectively have more than the minimum level of acceptances needed to assume control of Open Country.
"Dairy Trust now holds acceptances and agreements from certain [Open Country] shareholders to accept the offer [if the offer is validly varied on the basis set out above] for over 50.10 per cent of the OCC shares," Affco said in a statement.
Lewis conceded the offer was significantly less than the $3.20 a share amount paid by Olam for its 19.9 per cent stake last month.
"Some people must have seen some good reasons to support us," he said.
The higher figure was the upper level of the range contained within an independent review of the offer commissioned by Affco.
He said Dairy Trust had varied the offer because it was able to do so and because it wanted to succeed in the takeover.
Dairy Trust also plans to extend the offer an extra week until July 24.
It will send a notice of variation to Open Country shareholders when it has amended its combined prospectus and investment statement.
Affco said it would have had to seek further shareholder approval to boost its offer beyond 1.75 Dairy Trust shares for each Open Country share.
It also said ownership of its Moerewa, Horotiu and Wanganui sites had been transferred to Dairy Trust last week as well as a $15 million cash subscription.
