Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


A2 shareholder Freedom Foods buys $589k of shares

A2 cornerstone shareholder Freedom Foods buys $589k of shares after dilution

By Paul McBeth

Sept. 5 (BusinessDesk) - ASX-listed Freedom Foods Group bought almost one million shares of A2 Milk Co this week for about $589,000 after its stake was diluted in the past year due to the issue of partly-paid shares.

The Sydney-based food company bought 942,500 shares in four transactions in A2 this week at an average price of about 62.5 cents, according to a substantial shareholder notice filed to the NZX. Freedom Foods holds about 117.9 million shares, or 17.9 percent of A2, leaving it as the biggest shareholder in the milk marketing company.

Because A2 issued partly-paid shares to executives earlier this year, Freedom Foods' stake was diluted down from 18.1 percent when it made its last disclosure in December 2012.

Shares of A2 rose 1.6 percent to 63 cents today, and have dropped 23 percent this year. The stock is rated an average 'buy' based on four analyst recommendations compiled by Reuters, with a median target price of 80 cents.

Last month A2 reported a slump in annual profit to $10,000, even as sales rose 17 percent to $111 million, as a strong kiwi dollar eroded the value of revenue and earnings.

In its Aug. 29 results announcement, Freedom Foods said it intends to keep a strategic stake in A2 in the medium-term, while keeping the option to "realise capital from the investment to support growth opportunities."

Freedom Foods said A2 offers "potentially significant value creation" through the milk marketing firm's growth in Australia and international markets.

Shares of Freedom Foods rose 3.7 percent to A$3.12 on the ASX yesterday, and have climbed 13 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news