Wiseman strikes for Unigate

By THIS IS MONEY
Updated:

 

The takeover tangle for Unigate's dairy and cheese operations took a further twist today as Robert Wiseman Dairies, the Scottish milk business, announced a £225m bid.

The new twist comes only days after Unigate formerly posted details of its merger plans with rival Dairy Crest.

Wiseman hopes its offer will be strong enough to entice the board and shareholders of Unigate to reject the Dairy Crest deal.

A spokesman for Wiseman said its bid was clearly more attractive to shareholders in that it represented a 27% premium to its rivals merger proposals.

And it is believed that the board of Unigate are still willing to consider an alternative to its merger plans.

Under the terms of the Wiseman counter-offer, £125m would be payable direct to shareholders and the balance would entail the company taking on Unigate's £100m debt.

Wiseman has arranged a £325m credit facility with Germany bank Westdeutsche Landesbank Girozentrale to fund the bid.

Chairman Alan Wiseman said: 'We believe that this is an excellent deal for Unigate's shareholders and employees alike.

'Our offer not only values the Unigate Dairy Business at significantly more than a Dairy Crest merger proposal, but also offers the certainty of a full cash payment.'

News of Wiseman's offer follows this week's announcement from the Secretary of State for Trade and Industry that he would not refer the proposed acquisition to the Competition Commission.

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