Auckland based A2 Milk Plans to Raise up to $43 Million Through Share Placement and Share Purchase
A2 Milk, the Auckland based company that markets milk with different protein variants which is supposed to have health benefits is planning to raise $43 million via a share placement and purchase plan. Few months back the company shelved its plans of raising equity at a time the largest of its shareholders articulated interest of a full takeover.
In a statement A2 Milk said, the cash raised will mainly go as working capital for funding the noteworthy growth in its business of infant formula in Australia and New Zealand as well as China. It said that the product category was coming up at a more significant rate than expected.
Goldman Sachs has been hired by the company to handle and completely underwrite a $40 million placement with a basic price of 67c per share. The existing share holders will also be offered a share purchase plan that is expected to raise about $3 million at a similar price.
The company said that it has boosted a debtor finance facility from $A 3 million to $A10 million and is also is in discussions to arrange an additional bank guarantee facility of $10 million.
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