AN independent valuation of Warrnambool Cheese and Butter (WCB) has placed Saputo's offer for the company just above the lower end of the value range.
KPMG Corporate Finance has valued WCB shares at between $6.96 and $7.49, placing Saputo's cash bid of $7 per share just within the range.
However, Saputo's offer gives WCB the discretion to pay two fully franked dividends that would lift the value, depending on the tax position of individual shareholders. WCB directors have advised shareholders to accept the offer.
WCB commissioned KPMG to prepare an independent expert's report in response to the earlier offer by Bega Cheese, which WCB advised shareholders to reject.
KPMG estimates the value of Bega's bid of 1.2 Bega share plus $2 per share at $5.77 to $6.08.