Australia's United Dairy seeks stake sale
After 12 months of exploring business expansion options, United Dairy Power is now looking to sell a portion of the firm to an Australian dairy investor. United Dairy is the biggest private milk supplier in Australia, wrote Business Spectator.
United Dairy general manager Darryl Cardona commented on the planned stake sale: "We wish to remain Australian owned. Consolidation of the dairy industry globally is continuing, you only have to look at Warrnambool Cheese and Butter."
Warrnambool has been the center of a buyout tussle among Bega Cheese Ltd, Canadian firm Saputo Inc, and Murray Goulburn Co-operative Ltd, the report added.
Cardona did not disclose the names of the companies which were interested in purchasing a stake in United Dairy. In addition, he denied that Manassen Foods, a Chinese firm, was interested in taking over the Melbourne company, the report explained.
The cash flow of United Dairy has led some potential acquirers to value the firm from $30 million to $40 million. Previous efforts to sell the company have been unsuccessful because of concerns about contract maintenance between farmers and buyers, Business Spectator reported.