|
Monday 12th April 2010 |
Text too small? |
A2 Corp., which licenses techniques to identify milk with a protein variant claimed to have health benefits, is in talks for a “merger of equals” with ASX-listed Freedom Nutritional Products that would create a $62 million company.
The two businesses on Friday signed a three-week ‘exclusivity deed’ during which they will undertake due diligence and attempt to agree terms for a merger. The enlarged company would trade on the ASX, they said in a statement.
The unprofitable A2, which has seen its shares sink 70% over the past five years, has struggled to gain traction in the South Korean market, where its former partner withdrew the products and a rival firm began marketing an A2 infant formula.
It is reviewing its strategy for North America, a region the company describes as “a major challenge.” Its Australian joint venture is growing in line with expectations, according to the company’s interim report.
Shares of A2 Corp. fell to 7.9 cents on Friday, valuing the company at $30.1 million, from 8.5 cents the previous day. Freedom Nutritional was last at 32 Australian cents on the ASX, giving it a market value of A$24.8 million.
Businesswire.co.nz
No comments yet
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
