A2 eyes growth through merger
New Zealand-based dairy firm A2 Corporation is eyeing expansion in Australia and beyond following its merger with ASX-listed Freedom Nutritional Products.
Previously, Freedom Nutritional had produced A2 products in Australia under an exclusive rights arrangement.
The company signed a sale and subscription agreement with Freedom to buy a 50% interest in A2 Dairy Products in return for 120,376,950 fully-paid ordinary A2 Corp shares, comprising 25% of the enlarged company.
The deal includes a provision giving Freedom the right to increase its stake holding in A2 to 27.1%.
Freedom Nutritional also operates Freedom Foods, Paramount and Brunswick seafood, and has a 50/50 UHT beverage joint venture with the Perich Group, Contract Beverage Packers of Australia. The group also has a 75/25 joint venture with Ian Thorpe, Thorpedo, for low GI sports beverages in Australia and Japan.
A2 chairman Cliff Cook said the enlarged group was now comfortable with its position in Australia and would focus focus on expansion elsewhere.
“We can now set our sights firmly on future opportunities elsewhere in the knowledge the Australian market still has significant future growth potential for the company,” he said.
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