Cashed up Bega cool on play for co-operative
BEGA Cheese has remained tight-lipped about whether it is pursuing a potential takeover of Murray Goulburn but has said it has a strong enough balance sheet to fund growth opportunities, including acquisitions.
Bega Cheese and Canadian dairy giant Saputo are believed to be among the front runners for the co-op.
Murray Goulburn confirmed in September it had approaches from a number of suitors interested in either assets or taking over the business.
Bega Cheese executive chairman Barry Irvin and chief executive Paul van Heerwaarden did not mention Murray Goulburn at its annual general meeting at Kalaru in NSW yesterday.
But Mr van Heerwaarden did say Bega’s strong balance sheet put the company in a position to consider growth opportunities.
“We should be in a position to respond to business opportunities if and when they present themselves,” he said.
Murray Goulburn is expected to say more about the sale process at its annual general meeting on Friday.
Mr Irvin told shareholders Bega had become the company of choice for Australian dairy farmers over the past few years.
“We’ve had a phenomenal inquiry from dairy farmers wanting to transfer supply to us,” he said.
“We did accept some in the 2017 financial year and have taken more this year.”
In August, Murray Goulburn reported a $370.8 million loss for the year to June 30 amid plummeting milk supplies.
Mr Irvin also said Bega’s nutritionals business had returned to stability, and there were further growth opportunities in that area, the dairy ingredients business and in the international and Australian food service and retail channels.