a2 Milk Company plans to list on Australian Securities Exchange
Auckland-based a2MC, which is already listed on the New Zealand Stock Exchange (NZX), announced earlier today it has begun a process to apply to be listed on ASX.
Goldman Sachs New Zealand and DLA Piper Australia have been drafted in to advise on the listing process, which a2MC expects to complete by the end of March 2015.
Since its launch in Australia in 2007, a2 Milk has growth to become the best selling premium fresh milk brand Down Under - controlling around 9% of all fluid milk sales in terms of value.
Given its success in Australia, the proposed ASX listing is a "logical" move for a2MC, said managing director, Geoffrey Babidge.
“With a significant part of our earnings and growth coming from Australia, seeking an ASX listing is a logical strategic move for the company," he said.
"Listing on ASX will enable more Australian investors to participate in the company's growth and will increase the attractiveness and liquidity of its shares. The board believes that this will benefit all shareholders."
He added, however, that a2MC is not seeking to raise any capital through the ASX listing.
US launch
a2 Milk, which is also marketed in New Zealand and the UK, is rich in A2 beta casein protein but contains no A1 beta casein protein, which has been linked to digestive discomfort.
Dairy cows typically produce milk containing both protein, but a2 milk is sourced from specially selected dairy cows that produce milk containing only the A2 protein.
Long-life milk, cream, yogurt and infant formula, boasting the same digestive benefits, are also marketed under the a2 brand.
In July 2014, it resumed shipments of its a2 Platinum infant formula to China after a break of more than two months.
Earlier in the year, it announced plans to launch a2 Milk in the US.
In an update today, a2MC said it has "selected a West Coast region for the launch of the a2 Milk brand into the fresh milk market during the second half of financial year 2015."
"A wholly owned US subsidiary has been established and an experienced local management team engaged," it added.
