The a2 Milk Company has received an expression of interest for a potential acquisition of all of 2MC’s shares from two associated trade parties rumoured to include Freedom Foods and a leading international liquid dairy milk company.
According to media reports, a consortium has lodged a non-binding and conditional bid with a view to undertaking due diligence to determine whether to enter into a binding proposal.
The Australian and New Zealand-listed a2 Milk Company said that the parties have requested confidentiality, and stated that their expression of interest may be withdrawn if it ceases to be confidential.
“The Proposal is subject to a number of key conditions including access to due diligence, exclusivity, no material adverse change in the affairs or prospects of a2MC, various approvals including under the New Zealand Overseas Investment Act and no change in the number of shares on issue,” 2MC said.
“The last condition is particularly relevant as the Company has recently been contemplating, and was in advanced stages of planning for, an equity raising.”
The Board intends to seek further information in order to evaluate the Proposal and will update the market on further developments as appropriate.
The Perich family controlled Freedom Foods is the single biggest shareholder in A2 with 19.14% and increased its stake in June.
The a2 Milk brand is promoted as coming from cows selected to produce only the a2 beta-casein protein, beneficial for those who are intolerant to the a1 protein in milk. A2 Milk has captured over 9.0% of the Australian fresh milk market.