A2 Milk raises $40 mln at 5.5% discount in placement 9 Oct 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- Government Widens Drought Assistance News
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
A2 Milk raises $40 mln at 5.5% discount in oversubscribed share placement
By Suze Metherell
Oct. 9 (BusinessDesk) - A2 Milk, which markets milk with a protein variant said to have health benefits, raised $40 million in a discounted share placement to help fund working capital in its burgeoning infant formula business.
The Auckland-based firm sold 58.8 million shares at 68 cents apiece in placement, which was over-subscribed. That's a 5.5 percent discount to the 72 cents where the shares last traded on the NZX before going into a trading halt ahead of the offer, but 1 cent above the base price the company flagged yesterday. Goldman Sachs New Zealand has agreed to underwrite the issue if there had been a shortfall.
A2 also wants to raise up to $3 million through a share purchase plan to existing investors at the same price.
The capital injection will be used mainly to drive growth of infant formula sales in China, Australia and New Zealand, where sales have been ahead of budget in the first two months of its financial year.
"Infant formula is emerging as a more significant and meaningful growth driver for the company than expected, with a current focus on sales in ANZ and in China," it said in its placement announcement yesterday. "A2 is experiencing significant growth in sales of infant formula into the ANZ market as well as direct and indirect sales into China. In addition to the growth in infant formula, the prospects for growth of A2 Milk branded whole milk powder are also encouraging."
The company also hoped the placement would deepen its institutional shareholder base.
Australian media reported A2's biggest shareholder Freedom Foods Group wouldn't participate in the offer. In June, Freedom Foods and Texas-based food and beverage company Dean Foods formed an investment group that was contemplating a takeover offer for the milk marketer, which A2 ultimately rejected a month later, saying it wasn't compelling.
The proposed takeover bid triggered disclosure from A2 that it had been in advanced stages of planning for an equity raising, when the would-be buyers said as a condition of their expression of interest there be no change in the number of shares.
Yesterday, the company affirmed 2016 guidance for revenue to climb 72 percent to $267 million and earnings before interest, tax, depreciation and amortisation to jump 150 percent to $12 million before one-time items. The company held cash and equivalents of about $6.1 million as at June 30, down from almost $16 million a year earlier.
The dual-listed shares last traded at 65 Australian cents on the ASX.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more