Murray Goulburn hoses down speculation

September 26, 2017

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 said in brief statement to the ASX last week.
Murray Goulburn said it and financial advisor Deutsche Bank are "engaging with a number of parties to assess their proposals".
But the company  said it is too early to comment on valuation or implementation, and there is no certainty that any transaction will eventuate.
Murray Goulburn said no offer has been received for the units in the co- operative's listed investment vehicle, the MG Unit Trust, for $1.20 per unit, as speculated in the media.
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.
Murray Goulburn's dairy suppliers have been deserting the co-operative after it unexpectedly slashed its farmgate milk price in April 2016, sparking chaos across the industry.
The co-operative is reviewing its operations, corporate structure and capital structure in a bid to restore strength.

Early this week Fonterra confirmed it was one of the parties interested in the co-operative.

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