A2 Milk to seek ASX listing, push into US market, renew sales into China
By Fiona Rotherham
Nov. 18 (BusinessDesk) - A2 Milk Co is planning to list on the Australian stock exchange and launch into the US market next year, has changed its marketing push in the UK including gaining entry into Sainsbury and Wholefoods supermarkets, and is about to renew infant formula sales in China.
The Auckland-based milk marketing company doesn't plan to raise any new capital in a listing on the ASX and will keep its New Zealand incorporation and NZX listing. It has hired Goldman Sachs New Zealand and DLA Piper Australia to manage the listing, and hopes to join the Australian bourse in the first quarter of 2015.
Managing director Geoffrey Babidge told shareholders at today’s annual meeting in Auckland that the strength of the Australian market continued to underpin the company’s strategic growth plans in the UK and China and soon in the US. A2 Milk is one of the fastest-growing dairy brands in Australia with year-on-year brand growth of 38 percent for the four months ending October compared to the previous corresponding period. It now has an estimated 9 percent share of milk sales by value in grocery.
Given the earnings growth out of Australia, an ASX listing was a logical move, he said.