Freedom National Products in merger talks

Posted by Josette Dunn on 12th April 2010

Diversified food company Freedom National Products Limited (FNP) and A2 Corporation Limited(A2C) – the company that owns and commercialises intellectual property that enables the identification of cattle for the production and subsequent marketing of a2 MilkTM – announced on Friday that they are in merger talks.

Milk deal

The announcement on the ASX  stated that they are discussing a ‘merger of equals’ under which the surviving entity would remain listed on the ASX.

To facilitate discussions the companies have signed an exclusivity deed which provides for a three week exclusivity period during which the parties will: undertake due diligence; and attempt to negotiate the terms of the merger.

Freedom Nutritional Products has also been granted a right of first refusal by Mountain Road Investments Ltd – the largest shareholder in A2 Corporation – for up to 15% of the shares issued in A2C.

Under this arrangement FNP has the right to acquire the offer shares if Mountain Road Investments wishes to sell them to a third party under a cash offer.