Melbourne, March 31 - Australian dairy and juice producer National Foods, owned by Japanese brewer Kirin Holdings, has lodged an indicative offer for milk and cheese producer Dairy Farmers, a source familiar with the situation said on Monday.
Dairy Farmers, which is owned by some 2,000 Australian farmers and makes Dairy Farmers brand milk, Coon cheese and Ski yoghurt, put itself up for sale last month.
It said on Friday it has had wide interest in a deal, which could be worth between A$800 million-A$1 billion ($730-$920 million).
"National Foods has put in an indicative offer," the source told Reuters on condition of anonymity.
National Foods, bought by Kirin last November for A$2.8 billion, is one of Australia's largest food groups with brands including Pura milk, Big M flavoured milk and Yoplait yoghurt.
First-round offers in the sale process, which is being run by Goldman Sachs JB Were, have closed.
Dairy Farmers last week confirmed the sale process was underway, telling its farmers on Friday that it would be "methodical" in its assessment of various options.
"The board will use this formal process, including necessary confidentiality requirements, in a rigorous and fair manner with all interested parties," Chief Executive Rob Gordon said. Analysts have said other potential bidders include unlisted New Zealand dairy giant Fonterra, Italy's Parmalat, Australian food group Goodman Fielder and Singapore's Olam International.
Fonterra said it did not comment on market speculation.
"We are concentrating on organic growth and maximising the opportunities within our existing Australian business," a Fonterra spokeswoman said.
The Australian Financial Review reported that Fonterra was likely to progress to the second round of the sale process, without citing sources.
Parmalat and Goodman Fielder could not be reached immediately for comment. ($1=A$1.09)