Lo­cal ri­vals keen to bid for Mur­ray Goul­burn

Dairy News Australia - - NEWS -

TROU­BLED DAIRY pro­ces­sor Mur­ray Goul­burn has con­firmed it has had ap­proaches from a num­ber of suitors in­ter­ested in ei­ther buy­ing some as­sets or tak­ing over the whole co-op­er­a­tive. "These pro­pos­als have ranged from the sale of cer­tain as­sets to whole-of-com­pany trans­ac­tions," Mur­ray Goul­burn has said in a state­ment. Fon­terra has con­firmed in an in­ter­view with ABC Ra­dio that it has put for­ward a pro­posal. "It’s non-bind­ing and in­dica­tive and at this point we are go­ing to sit tight and give the MG board the re­spect they de­serve to con­sider all pro­pos­als," Fon­terra Aus­tralia MD Rene De­doncker said last month. "When they [the Mur­ray Goul­burn board] are ready to talk we will be there and at some point when the boards are aligned there may be news." Mur­ray Goul­burn said it and fi­nan­cial ad­viser Deutsche Bank are "en­gag­ing with a num­ber of par­ties to as­sess their pro­pos­als". But the com­pany said it was too early to com­ment on val­u­a­tion or im­ple­men­ta­tion, and there is no cer­tainty that any trans­ac­tion would even­tu­ate. Me­dia re­ports that an was made for the units in the co- op­er­a­tive’s listed in­vest­ment ve­hi­cle, the MG Unit Trust, for $1.20 per unit were false, ac­cord­ing to the co-op. Par­ties that have been re­ported to be in­ter­ested in Mur­ray Goul­burn’s as­sets in­clude Fon­terra, Par­malat, Sa­puto, Good­man Fielder, Bega, Lion and A2 Milk. Mur­ray Goul­burn said in Au­gust that it had re­ceived un­so­licited in­dica­tive pro­pos­als for all or part of its busi­ness and that it would start "cor­ralling" that in­ter­est so that it can con­sider it in a struc­tured fash­ion com­pared to the ad hoc na­ture in which it had come through. In Au­gust, Mur­ray Goul­burn re­ported a $370.8 mil­lion loss for the year to June 30 amid plum­met­ing milk sup­plies. It is cur­rently re­view­ing its op­er­a­tions, cor­po­rate struc­ture and cap­i­tal struc­ture in a bid to re­store strength.

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