Company News

BRIEF-Murray Goulburn selects Saputo Dairy Australia as prefered bidder for its businesses

Oct 27 (Reuters) - MG Unit Trust

* Announces MG sale to Saputo

* Murray Goulburn Co-Operative entered into a binding agreement with Saputo Dairy Australia Pty Ltd

* Sale to Saputo of all of MG’s operating assets and operating liabilities for A$1,310 million

* Transaction includes MG milk supply commitments for active MG suppliers totalling approximately $114 mln

* Estimated initial distribution of about $0.75 per share/ unit to be paid shortly after completion of deal

* MG will step up FY18 FMP by $0.40 per KGMS to $5.60 per KGMS for milk supplied from 1 November 2017

* Murray Goulburn will retain all of assets and liabilities associated with MG Unit Trust

* Will also retain part of transaction proceeds

* estimated net value per share/unit of $1.10 to $1.15 after working capital adjustment and other costs

* Transaction is currently expected to complete in first half of 2018

* Directors of MG unanimously recommend shareholders vote in favour of transaction

* Transaction is subject to customary conditions including ACCC and FIRB approvals Source text for Eikon: Further company coverage: