Offer to takeover Murray Goulburn Kiewa plant as a going concern knocked back amid concern over its genuineness

The would-be buyer, who did not want to be publicly named, told The Border Mail he sought the plant as a going concern.

But he said Murray Goulburn was not interested in discussing a deal for the site which will stop producing milk at the end of this month.

The Victorian said his company wanted to buy the factory as is, because it could not afford to takeover the site without pre-existing infrastructure and approvals.

“We’ll just go quietly and see how it plays out, we’ll sit back and see what happens,” he said.

“Everyone would benefit by Kiewa being left open and we could have given Murray Goulburn a package which could have helped them as well.”

But Benambra MLA Bill Tilley, who met Murray Goulburn chiefs on Wednesday, queried the bid.

“I don’t think it was necessarily a genuine offer, because it wasn’t providing any real detail,” Mr Tilley said.

He suggested it “falls a bit short of the mark and it gives community false hope and business false hope”.

Murray Goulburn did not respond directly to questions about the offer. 

“Our immediate focus is on assessing which plant and equipment can be transferred to alternative MG sites to continue or improve production capability,” a spokesman said.

“Once this process has been completed, we will be in a position to better consider future options for the site.”

The spokesman noted the Danone yogurt joint venture would continue and it needed to figure into future uses.

“Longer term we are not intending to mothball the site and we have been approached by parties interested in the site,” he said.

“We are unable to disclose details of interested parties given commercial sensitivities.

“Maximising value to MG and its stakeholders remains a key focus in considering future options for the site and any decision is subject to management and board approval.”

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