A2 Corporation Signs Merger Agreement

A2 Corporation has signed a sale and subscription implementation agreement with Australia’s Freedom Nutritional Products (FNP) to buy a 50% interest in A2 Dairy Products in return for 120,376,950 fully-paid ordinary A2 Corporation shares, comprising 25% of the company.

The deal will allow FNP to boost its shareholding in A2 to 27.5%.

The New Zealand-based dairy said it will benefit from having 100% control of the market for A2 milk.

In February, A2 reported a post-tax loss of NZ$717,172 (US$479,882) in the six months ending December after posting a loss of NZ$1.99m (US$1.33m) in the last half of 2008.