Milk company plans to play with big boys
Milk marketer A2 Corporation has outgrown the junior market and has its eye on the NZX 50.
At its annual meeting in Auckland yesterday, A2 managing director Geoff Babidge outlined plans to shift from the AX to the NZX main board. The move, expected by Christmas, would provide greater liquidity and better access to capital, he said.
A2 shares were unchanged at 65c, giving the company a market capitalisation of $393 million. At that level it is bigger than NZX 50 constituents Steel & Tube, Cavalier, Restaurant Brands, Heartland NZ, Skellerup and Hallenstein Glasson.
However, it is not clear whether A2 would meet the liquidity requirements - 51.4 per cent of the firm is held by controlling shareholders Freedom Foods and Cliff Cook's investment company Mountain Road, and its shares are relatively thinly traded.Fairfax NZ
Taranaki Daily News