New Zealand-based milk marketing company a2 Milk has rejected a joint takeover proposal from Australia's Freedom Foods and US food giant Dean Foods.
The company's board did not consider the proposal, which was made in June, as compelling.
Earlier, a2 Milk in a statement said the proposal was non-binding and 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.
a2 Milk, however, advised it is considering negotiating with Freedom/Dean Foods over the expression of interest (EOI), subject to agreement on appropriate confidentiality and related undertakings customary.
Meanwhile, the company is assessing other confidential enquiries of potential interest in its takeover offer.
Separately, the company estimates its 2016 revenue forecast to increase from NZD$230m ($149.5m) to NZD$267m ($173.6m). This is due to infant formula sales growth in New Zealand, Australia and China, reported Reuters.
The company is engaged in producing liquid milk and milk formula. It also exports its products to China, Australia, the US and UK.
