No takeover bid imminent for A2

Deans Food2A2 Milk Co says “no takeover offer is imminent” after US-based Dean Foods and Australian-based Freedom Foods stopped talking about their offer.

Dean Foods and Freedom Foods, which is a major supplier to and shareholder in A2, put forward an expression of interest to buy the company in June for an undisclosed amount.

They were subsequently knocked back by A2’s board, which said the deal wasn’t compelling enough and talks have since stalled.

In August, A2 said it hadn’t received anything more on the bid.

ASX-listed Freedom Foods says it has “ceased detailed discussion in relation to A2” with Dean Foods, and is still reviewing its 18 per cent holding in the firm, “including evaluating the benefits of maintaining a strategic stake”.

A2 shares on the ASX were down A2.00 cents, or 3.15 per cent at 61.5 cents, at 1144 AEST on Tuesday.

The company on Tuesday asked for its NZX traded shares to be halted pending an announcement shortly after the market opened, after its shares dropped 7.1 per cent to NZ65 cents.

It reiterated its August statement that it had received no further communications from Dean Foods and Freedom Foods, and the shares are now down 2.9 per cent to NZ68 cents since the halt was lifted.

“Although there has been no formal withdrawal of the expression of interest, the board continues to consider that no takeover offer is imminent,” A2 said.

BusinessDesk

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