A2 Milk rejects takeover by Freedom Foods and Dean Foods consortium
The A2 Milk Company is currently reviewing some other undisclosed expressions of interest for acquisition after it decided to reject the takeover offer made by Freedom Foods and the Dean Foods Company.
In an update released to the Australian Securities Exchange (ASX) and the New Zealand Stock Exchange (NZX) ,Managing Director and CEO of The A2 Milk Company, Geoffrey Babidge said that the Expression of Interest proposal made by Freedom Foods and Dean Foods Company was not “compelling” and his company had decided not to recommend it to its shareholders.
General Manager and CEO Geoffrey Babidge stressed that a takeover was not a given.
“The Board remains of the view that there is no certainty that any proposal will result in a transaction or offer capable of acceptance by the Company or its shareholders, and that takeover is not imminent,” said Babidge.
Record Australian profits update released by A2 Milk
On the same day as updating the market on the current state of play for acquisition offers, The A2 Milk Company also provided a trading update with the new figures showing record Australian earnings.
The company reported a Group revenue of NZ $154 million for the 2015 Financial Year, a 39 per cent increase over the prior corresponding period.
The A2 Milk Company said across the 2015 Financial Year, it experienced significant revenue growth for its infant formula in Australia, New Zealand and China. The company said the product is emerging as a significant growth driver and it has expanded its range as a result.
The A2 Milk Company said it was very positive about its prospects in China. It also believes a slice of its Australian grocery and pharmacy sales were on-sold to Chinese consumers.