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

 

A2 shares soar 25%, making it NZ's biggest listed company

A2 shares soar 25%, making it NZ's biggest listed company

By Paul McBeth

Feb. 21 (BusinessDesk) - A2 Milk Co shares jumped 25 percent, making the milk marketing firm New Zealand's biggest listed company on a deal that will give it backing from Fonterra Cooperative Group.

The stock gained $2.31 to $11.60, valuing a2 Milk at $8.47 billion, toppling Auckland International Airport at $7.75 billion, Fisher & Paykel Healthcare at $7.37 billion and Meridian Energy at $7.29 billion. The spike underpinned the S&P/NZX 50 index, which gained 1.5 percent to 8,215.63 as at 2.35pm.

A2 unveiled a strategic partnership with the world’s biggest dairy exporter agreeing to exclusively supply a2 with A1 protein-free milk products in bulk powder and consumer packaged forms, in exchange for an exclusive licensing agreement to produce, sell and market a2 branded fresh milk for end sale in the New Zealand market. They'll set up an A1 protein free milk pool in Australia and Fonterra also gets exclusive supply rights for some products in new markets for a2 in South East Asia and the Middle East up to a specified volume.

"It was a pretty significant announcement for a2 and shows their growth can move by a lot quicker than past opportunities with Synlait Milk," said Grant Williamson, a director at Hamilton Hindin Greene in Christchurch. "The Australian investors in particular just like this company."

Synlait shares sank 11 percent to $6.31, having followed a2 higher through 2017 on expectations the close supply arrangement would see the milk processor benefit from the growing demand for the marketing firm's branded products.

"Investors in Synlait obviously through with the connection between the two, Synlait would have to keep up," Williamson said. "This changes things."

Units in the Fonterra Shareholders Fund gained 0.8 percent to $6.05.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Reserve Bank: A least regrets approach to uncertainty

The Reserve Bank of New Zealand – Te Pūtea Matua makes decisions about official interest rates in a way that is robust in the face of uncertainty about the economy, Reserve Bank Assistant Governor Christian Hawkesby says in a speech published today*... More>>




Shocking Stuff: Lower Income Areas Paying More For Power

Analysis from Consumer NZ and Powerswitch has found major differences in electricity pricing depending on where you live, with those in lower income areas being hit the hardest... More>>



Science Media Centre: Understanding DDoS cyber attacks – Expert Reaction

Cyber attacks have hit several New Zealand organisations this month, disrupting their online services. The Distributed Denial of Service (DDoS) attacks were the same kind of cyber attack that affected the NZX around this time last year... More>>



Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>


Energy-from-waste: $350 Million Plant To Deliver Renewable Energy Considered

Investigations have begun into the viability of building an Energy-from-Waste plant that will safely convert 350,000 tonnes of waste, that would otherwise be dumped into South Island landfills annually, into renewable electricity... More>>

Olam: Confirms plans for commissioning of NZ dairy plant

OFI, a global leader in natural and sustainable food ingredient solutions, today confirmed plans to develop a new dairy processing facility at Tokoroa. It is now taking expressions of interest from potential farmer suppliers, employees, contractors, and general trade suppliers... More>>