Company News Summary | 21 Apr 2021

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Bega Cheese Provides Update on Tatura MSD2 Plant

09:31:00 | Associate analysts

Original annuncemenet:Tatura MSD2 Plant

Bega Cheese advised that it sold the MSD2 dryer at Tatura and its infant formula finishing plant at Derrimut to Reckitt's subsidiary Mead Johnson Nutrition (Australia) for $200m. The transaction included services and access agreements with Reckitt for the spray dryer and finishing plant expiring on 31 December 2026. The Company noted in its 1H FY 2021 results that Reckitt had advised of its intention to terminate the services and access agreements regarding the Derrimut infant formula finishing plant. To compensate for the loss of future payments to be made by Reckitt to Company under the services and access agreements, a contractual termination fee of $21.1m is expected to be received by it across FY 2021 and FY 2022.

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