Sharechat Logo

A2 seeks strategic review to accelerate growth

Wednesday 18th April 2012

Text too small?

A2 Corp has tapped Sydney-based corporate advisers Greenhill Caliburn to undertake a strategic review of the business as major players in the dairy sector start to take notice of the NZAX-listed alternative milk company.

A2 has been approached by would-be partners and wants to review its options to speed up growth and maximise shareholder value, it said in a statement. That’s seen its board appoint Greenhill Caliburn as principal adviser, with support from New Zealand advisers Clavell Capital. The review is expected to take several months.

“We are conscious of ensuring that we lay the appropriate platform for growth in new markets and the next strategic steps we take are important to ensure we optimise shareholder value,” chairman Cliff Cook said. “This, coupled with recent approaches from industry participants, makes this the appropriate time to undertake a full review of our strategic options.”

Earlier this week A2 signed a supply deal with Canterbury-based Synlait Milk to manufacture A2 brand nutritional powders which it hopes to sell on the international market, particularly targeting infant formula for the Chinese market.

The shares fell 2 percent to 50 cents in trading yesterday, and have surged some 113 percent this year. Last month, the company raised $5.2 million in a share placement at 37 cents apiece, and it is valued at $302.3 million by market capitalisation.

Chief executive Geoffrey Babidge said the review will be based on the fact that “A2 is already well-positioned to maximise long-term growth standalone as well as considering partnership options to support expansion, in specific jurisdictions or more broadly.”

A2 expects to launch its product in British markets in September this year, and has formed a partnership with Robert Wiseman Dairies to do so.

The company claims its milk is healthier than traditional A1-type milk although those claims haven't been backed by scientific evidence.

BusinessDesk.co.nz

Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019


  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:

A2 Corp's Babidge, Mair take advantage of soaring price to sell 6M shares
A2 shares touch record-high as investors buy into growth story
A2 FY profit slips on cost of setting up UK joint venture, sales jump 51 percent as Australian shines
A2 first-half profit dented by UK joint venture, affirms annual earnings target of $11.2M
A2 to raise $20M in placement, big shareholders sell down
A2 Corp mulls capital structure in face of growth opportunities
A2 Corp, in talks to move to main board, halts shares pending statement
A2 in talks with NZX about shifting to main board
A2 Corp to take control of NZ marketing; enter North America, Europe
A2 Corp talks up Chinese infant formula market potential