A2 Milk Company chases after Chinese baby formula boom
The A2 Milk Company has completed its NZ$40 million capital raising efforts as the dairy manufacturer plans to expand internationally.
On the 8 October 2015 the A2 Milk Company announced that it wanted to raise the capital to support its expansion in New Zealand, Australia and key international markets; China, the UK and the USA.
Growth in demand for baby formula in Australia, New Zealand and China was reported as the main driving factor for the expansion.
The A2 Milk Company succeeded in its capital raising by the 9 October 2015 with CEO Geoffrey Babidge saying the money with provide the business with the chance to enact on opportunities.
“The capital raising is an important step in strengthening the Company’s balance sheet, and will provide flexibility to execute on opportunities consistent with our growth strategy,.” said Mr Babidge.
Earlier in 2015 the A2 Milk Company rejected a takeover bid made by Freedom Foods and the Dean Foods Company based in the US.
