A2 Milk Company, which only sells milk with the A2 type of protein from specially selected cows, has rejected a joint takeover bid from its largest shareholder, Freedom Foods, and the US dairy group Dean Foods.
The company says the current offer isn’t “compelling” but it is open to further bids.
The board of A2 Milk says it has also received other confidential enquiries.
Freedom holds 17.9% of A2 Milk.
“The company has evaluated the EOI (expression of interest) and sought further information from Freedom/ Dean Foods,” said A2 Milk CEO Geoffrey Babidg. “The board does not consider that the proposal in the EOI is compelling, and accordingly the Board would not be in a position to recommend it to shareholders.”
In an update to the market, A2 Milk says the company is performing strongly. The underlying result for 2015 is ahead of plan with revenue of $NZ154 million, a 39% increase.
Strong growth is expected in the 2016 financial year with forecast revenue of NZ$267 million, 73% rise.
A2’s last traded at $0.665, up from a low of $0.465 in May.