MG bidders seeking whole of company sale

Attracting interest: Murray Goulburn says it has received bids to buy the whole of the company as well as others for certain assets, but none might proceed.
Attracting interest: Murray Goulburn says it has received bids to buy the whole of the company as well as others for certain assets, but none might proceed.

Murray Goulburn has confirmed it has received bids to buy the whole of the company.

The company said it had received a number of confidential proposals that also included bids to buy certain assets of the company. 

MG’s statement followed mounting media speculation about which companies were bidding for the struggling dairy processor.

MG said media speculation that a $1.20 a unit offer had been made for units in its MG Unit Trust was incorrect. It said there was no certainty that any transaction would eventuate.

The company said both it and its financial advisor Deutsche Bank AG were working with a number of parties to assess the proposals, including valuation.

MG is Australia’s largest dairy processor with its Koroit plant among its largest assets.

Selling MG as a whole is expected to be difficult as it would need the support of 90 per cent of shareholders in the cooperative. 

MG is unlikely to declare any of the bids until its October 27 annual general meeting.