Shareholders in the specialty milk producer A2 Corporation have approved a buy-out of its joint venture partner in A2 Dairy Products Australia.
The company, which is listed on the alternative market, wants to buy the shares held by Freedom Nutritional Products. Full ownership will give it exclusive rights for the production and sale of A2 milk products in Australia and Japan.
A2 shareholders approved the buyout at a meeting in Auckland on Tuesday morning, and in return, Freedom Nutritional Products will take a 25% stake in the company.
A2 Corporation chief executive Scott Pannell says the acquisition leaves the company in a stronger financial cash-flow position, paving the way for overseas expansion.
Freedom Nutrional Products has the option of increasing its stake to 27% at a later date.