(Adds quote, details on wave of M&A activity in dairy industry)
SYDNEY, Jan 30 (Reuters) - Canadian diary company Saputo Inc SAP.TO said on Monday it will make an all-cash takeover offer for the 12 percent of Warrnambool Cheese and Butter (WCB) it does not already own, valuing the company at A$682 million ($515 million).
The A$8.85 per-share offer is at a 24.8 percent premium to Warrnambool's Friday closing price of A$7.09.
Saputo, which already owns 88.02 percent of Warrnambool shares, will fund the acquisition from cash on hand and existing credit facilities, the company in a statement to the Australian Securities Exchange.
"Saputo have been aiming for full ownership, but there has been that block stake there for a while," said Michael Harvey, senior diary analyst at Rabobank.
Saputo acquired its majority stake in Warrnambool Cheese and Butter in 2014, beating local rivals Murray Goulburn Ltd (MGC) and Bega Cheese Ltd (BGA) in one of the Australia's most hotly contested takeover battles.
Saputo's offer is the latest in a series of M&A deals in the Australian dairy industry this year.
Bega earlier this month agreed a $460 million deal to acquire Mondelez International's
grocery brands in Australia and New Zealand. ($1 = 1.3233 Australian dollars)
