Freedom Foods Group has sold all of its remaining shares in The A2 Milk Co., less than a month after cutting its stake in the company.
The Australian company has offloaded its 10.4% stake for A$0.85 (US$0.61) per share. The firm said the proceeds would be used to invest in its “ongoing significant capital expenditure programme…consistent with the group’s growth strategy”.
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Last month, Freedom cut its stake in A2 Milk from 17.8% to 10.4%. Freedom said at the time its “current intention” was to keep “a strategic stake” in A2 Milk, while providing production support and milk supply.
In a statement today (17 November), Freedom said: “Recent significant share price appreciation in A2MC has led the group to form the view that the opportunity cost arising from the market value of the funds now employed in the holding would now be better utilised by being applied to activities and businesses in respect of which the group has either 100% ownership or significant ownership and control interests.”
Freedom said it will continue to provide A2 with production and milk supply through its group and associated entities.
This summer, A2 Milk rebuffed joint takeover interest from Freedom and US dairy group Dean Foods.
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