Friday , September 18 2020
Breaking News
Home / Business / A2 Milk grows up, launches $251m offer to buy Kiwi dairy manufacturer

A2 Milk grows up, launches $251m offer to buy Kiwi dairy manufacturer

ASX-listed infant formula and dairy company a2 Milk has made its first move into manufacturing, with a $NZ270 million ($251 million) offer to buy a 75 per cent share of New Zealand dairy business Mataura Valley Milk.

A2 now has a period of exclusivity to conduct due diligence on the business, which is based on New Zealand’s South Island.

A2 Milk has launched a $251 million bid to buy a majority share of a Kiwi dairy manufacturer.

A2 Milk has launched a $251 million bid to buy a majority share of a Kiwi dairy manufacturer.

Under the proposed deal a2 would acquire 75.1 per cent of Mataura Valley Milk, and Mataura’s existing majority shareholder, China Animal Husbandry Group, would retain a 24.9 per cent share.

“As previously announced, due to the increasing scale of our infant nutrition business, we have been assessing participation in manufacturing capacity and capability,” said a2’s acting chief executive Geoffrey Babidge.

About admin

Check Also

Government hands AAP $5 million lifeline

Mr Fletcher said AAP’s services were critical to the ongoing existence of regional news. “The …