Bega Cheese has announced its merger with Australian dairy manufacturer and exporter Tatura Milk Industries (TMI)
Moves on the merger began earlier this year, when Bega Cheese and 70 per cent owned TMI signed a Merger Principles Agreement, with the proposal that it would proceed shortly after it was listed on the ASX.
In an ASX announcement, Bega executive chairman Barry Irvin said the merger is expected to be completed by the end of the year, pending approval from TMI shareholders.
“The merger will involve the issue of two Bega Cheese shares in exchange for each TMI redeemable preference share,” he said in the statement.
Over 24 million Bega Cheese shares – representing 16.0 per cent of the expanded issued capital base of the Bega Cheese Group – will be issued to approximately 230 current TMI RP shareholders, who are also milk suppliers to Tatura Milk.
Two TMI supplier directors will join the Bega Cheese Board when the merger is complete.