San Miguel extends bid for Natfoods

San Miguel Corp, Fonterra's rival in the battle for control of Australia's National Foods has extended its A$1.75 billion ($1.90 billion) offer for the company to April 15 from March 18.

The Philippines-based San Miguel's A$5.90 per share bid, adjusted for a 10-cent National Foods dividend payment in January, remains below Fonterra's rival A$6.00 a share bid .

Fonterra last week lifted its offer by A65c to A$6.00 a share and said it would sweeten the bid to A$6.20, valuing National Foods at A$1.84 billion, if it won at least 90 per cent of the company.

National Foods shares last traded down 0.2 per cent at A$6.35 in a weaker overall market.

Meanwhile, Fonterra today said it had received a favourable tax ruling for National Foods shareholders who accept its offer and choose payment in Redeemable Preference Shares (RPS).

Australian-resident National Foods shareholders who would be taxable on capital gains when they sold their shares, could now defer this capital gains tax (CGT) liability by choosing to receive RPS.

The CGT liability will be deferred until they sell or redeem the RPS. The rollover relief was subject to Fonterra owning 80 per cent or more of National Foods shares.

Fonterra also said it was finalising its Supplementary Bidder's Statement which was expected to be mailed to National Foods shareholders next week.

- NZPA