Ann: Market update, page-37

Hello everyone :
Here’s an update from AFR on the Lion dairy sale in case anyone missed it .
Bega thought to be out of the running.

https://www.copyright link/street-t...ion-round-two-situation-fluid-20190115-h1a2po
“Bidders tapped for Lion auction round two; situation 'fluid'
By Sarah Thompson and Anthony Macdonald
16 Jan 2019 — 12:15 AM

Deutsche Bank has its work cut out trying to get a buyer for Japanese brewer Kirin's Australian dairy and drinks portfolio.

While Deutsche - which is running the Lion Dairy & Drinks auction along with financial adviser Greenhill - received a large handful of indicative bids from suitors last month, there seems to be a very narrow list of buyers for the whole portfolio.

It is understood a shortlist of potential buyers has been taken through to a second stage data room, although there remains others on the outside of the process that have not given up hope of picking up part of the portfolio.


Pura milk and other well known dairy brands, are up fro grabs as part of the Lion Dairy & Drinks portfolio. Paul Harris

Sources said it made for a fluid process - and one that may not be as straightforward as first envisaged.

The sale of a stake in New Zealand's Westland Milk Products, which is running to a similar timetable, is said to be not helping.

Japanese brewer Asahi is believed to be through to the second round and is working on a bid for the whole portfolio, which includes category leading brands such as King Island and Southcape cheese, Dairy Farmers and Pura Milk, Yoplait and Farmers Union yoghurt, Big M and Dare flavoured milk and Berri fruit juice.

ASX-listed Coca-Cola Amatil is also believed to be in the second stage of due diligence, along with partner Freedom Foods.

Coca-Cola is widely seen as the strongest bidder, however it is understood the soft drinks company has its eyes on Lion's flavoured milk business and would be relying on Freedom to take the regular milk. Former Lion executive Peter West is now head of Australian beverages at Coca-Cola Amatil.

Such a Coca-Cola/Freedom deal would leave room for other industry players to snap up the remaining brands, including specialty cheese and yoghurts. And while Canada's Saputo and Parmalat, owned by French company Lactalis, are not officially on the list, both are said to be hovering around parts.

It would make sense for Saputo to take the cheese and Parmalat focus on yoghurt, sources said.

Fellow listed company Bega Cheese - which had earlier been working with Asahi - is believed to be out of the process.

The unknowns are a couple of potential strategic acquirers from China including Mengniu Dairy and Inner Mongolia Fuyuan Farming Co, which owns a stake in Burra Foods. Both have Australian dairy assets, but are still relatively unknown quantity in Australian dairy and dealmaking circles. “


See also:
http://adf.farmonline.com.au/news/m...l/narrow-list-of-buyers-for-lion/2758293.aspx