Sharechat Logo

A2 calls special meeting to rewrite constitution ahead of ASX dual listing

Friday 9th January 2015

Text too small?

A2 Milk Co, which markets milk with a protein variant said to have health benefits, is calling a special meeting to change its constitution to shrink the number of New Zealand based directors required and allow for a bigger board as it gears up for a dual-listing on the Australian stock market.

The Auckland based company wants to modify its constitution to lift the maximum number of directors to eight, from seven, as passed at its annual meeting in November, while reducing the need for a minimum of three New Zealand directors to two, it said in the notice for its Jan. 27 special meeting in Auckland. The milk marketing company said it needs more flexibility for its board, ahead of its debut on the ASX and as it chases international growth.

"The board considers that the proposed reduction in the minimum number of directors who must be ordinarily resident in New Zealand is desirable because it would provide the board with the flexibility to appoint new directors with appropriate skills and experience and to transition the composition of the board in an orderly way," the company said.

A2 is gunning for a dual-listing in Australia in the first three months of this year, where it claims to have 9 percent of the fresh milk market sold in grocery stores. The company said it doesn't plan to raise any new capital in a float on the ASX and will keep its New Zealand incorporation and NZX listing.

In August, managing director Geoffrey Babidge called the Australian market A2's "big cash generator", and said it will bankroll its push into new markets. The company's annual sales rose 17 percent to $111 million in the year ended June 30, of which 96 percent came from Australian sales. A2 reported a drop in annual profit to $10,000 from $4.1 million a year earlier, as the strength of the kiwi dollar against its Australian counterpart weighed on sales.

It will also update the constitution with the company's new name, after changing from A2 Corp in March 2014.

Shares of A2 last traded at 56 cents and have fallen 39 percent over the past 12 months.

 

 

 

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report