The board of a2MC said it will not recommend the proposed deal to shareholders as it does not consider that the proposal in the expression of interest (EOI) is compelling.
The company announced it had received a conditional and non-binding joint offer EOI from Freedom Foods, who is already a significant shareholder, and Dean Foods, America’s second largest dairy processor.
a2MC has told the joint bidders that despite the initial rejection, it is willing to have discussions in relation to the EOI, but they could face competition.
The board has also received other confidential enquiries indicating potential interest in the company and is evaluating these.
The board remains of the view there is no certainty that any proposal will result in a deal.
Given the meteoric rise of a2 Milk, interest in the company is not surprising.
a2’s milk is rich in beta casein protein, but does not contain A1 beta casein protein, which has been linked to digestive discomfort.
a2MC moved on to Australia, where it controls a 9% value share of the country’s fresh milk market and has since established operations in the UK, US and China.
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