A2 Milk has gone into a trading halt. Photo / NZME
A2 Milk has gone into a trading halt. Photo / NZME
A2 Milk has gone into a trading halt, at the company’s request, on both sides of the Tasman pending an announcement regarding a potential acquisition.
“Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Tuesday, October 1, orwhen the announcement is released to the market,” ASX said.
Dual listed a2 Milk said it had asked for a trading halt to provide it with more time to respond to an ASX query and to inform the market regarding a potential acquisition.
The ASX had earlier asked for an explanation regarding a sharp rally in its share price.
In New Zealand, the stock gained 69c or 11.3% to $6.79.
This week, China unleashed a raft of stimulus measures including cuts to its benchmark interest rate as Beijing battles a slowdown in the world’s second-largest economy.
The People’s Bank of China also announced government funding to boost the stock market and aid share buybacks, as well as more support for the stricken property sector.
The package also specified that households with two or more children will be offered 800 yuan ($181) a month per child, excluding the first child, Reuters reported.
Habour Asset Management portfolio manager Shane Solly said the stock had gained on the back of the China package, and on speculation that it might buy processing capacity in New Zealand.
Most of a2 Milk’s formula is made by Synlait Milk, in which it has a near 20% stake.
A2 also has a majority stake in Mataura Valley Milk in Southland, which makes base milk powders.
China is a2 Milk’s biggest market and its infant formula is made with milk containing just the a2 beta protein and not the A1 protein, which most standard milk contains.
The company rates in the top five in terms of sales of infant formula in the PRC.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
