a2 Milk receives acquisition bids from two companies

Two unnamed companies are said to have expressed an interest in acquiring New Zealand-based listed dairy company, a2 Milk.

The company said in a statement that the bidders had requested confidentiality and will withdraw their expression of interest if it ceased to be confidential.

a2 Milk, which has a market capitalisation of AU$336m ($260.8m), is listed on both the Australian Stock Exchange and the New Zealand Stock Exchange.

The company has patented the a2 beta-casein protein that promotes digestion-related benefits of the A2 beta-casein protein. a2 Milk claims that its products are beneficial for people suffering from intolerance to the naturally occurring a1 protein in milk, that can lead to bloating and stomach pain.

Speaking about the potential deal, the company said in a statement: "The proposal is subject to a number of key conditions, including access to due diligence, exclusivity, no material adverse change in the affairs or prospects of a2MC, various approvals including under the New Zealand Overseas Investment Act and no change in the number of shares on issue.

"The last condition is particularly relevant as the company has recently been contemplating, and was in advanced stages of planning for, an equity raising."

a2 Milk recently opened operations in China, the UK and the US, and is said to hold around 9% value share of the total fresh milk grocery market in Australia.

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Image: The two bidder have requested confidentiality, loss of which can result in the termination of the deal. Photo: courtesy of aopsan/freedigitalphotos.net.