The future of the proposed Mataura Valley Milk company near Gore is in doubt after the resignation of two founding director-shareholders and a change in shareholding. Visit our site to learn more. Geoff Babidge, CEO of The a2 Milk Company. Chief executive Geoff Babidge said the deal with Mataura and CAHG would be key to establishing a strong base of operations in New Zealand, along with forging a deeper bond with A2’s Chinese partners. Click for more information. He estimated the value of the information to Mataura Valley possessed by Mr Scott would be somewhere between $4–$4.5 million. "The potential investment in Mataura Valley Milk's recently commissioned facility, alongside CAHG, aligns with this strategic objective as we look to complement and build upon our current strategic relationships with Synlait Milk and Fonterra Co-operative Group, which remain in place," said Babidge. ATM will pay $268.5 million for its stake, with the Chinese company, which owns one of A2 Milk’s main partners in China, holding the balance. Mataura Valley owns a new processing plant that is currently focused on milk powder production. ATM will pay $268.5 million for its stake, with the Chinese company, which owns one of A2 Milk's main partners in China, holding the balance. The a2 Milk Company enters into exclusive due diligence on Mataura Valley Milk August 21, 2020 The a2 Milk Company is pleased to confirm that it is engaged in discussions with Mataura Valley Milk (MVM), a New Zealand dairy nutrition business, to explore options for a2MC to participate in manufacturing at MVM’s facility in Southland, New Zealand. With ownership of patents and clever strategic supplier agreements it has (at this stage) locked other milk producers out of this market. Currently the major shareholder in Mataura Valley Milk is China Animal Husbandry Group (CAHG), which owns 78.6 percent. Earlier this month the company posted a record profit of $385.8 million. Geoff Babidge, CEO of The a2 Milk Company.Credit:Rhett Wyman. Clutha-Southland MP Hamish Walker said MVM had been working hard to earn the respect and trust of Southlanders. The new Mataura Valley Milk plant being built at McNab is forecast to pour about $90million annually, directly or indirectly, into the South’s economy. "Due to the increasing scale of our infant nutrition business, we have been assessing participation in manufacturing capacity and capability," said A2 Milk's chief executive Geoff Babidge. The current minority shareholders are a mix of private investors and farming interests. Specialty dairy company A2-Milk (ATM) is looking to take a majority stake in struggling Southland processor Mataura Valley Milk as it looks to expand its infant formula supply. Babidge said if the deal were to go ahead, CAHG's stake would be reduced to 24.9 percent. A2 Milk has launched a $246 million bid to buy a majority share of a Kiwi dairy manufacturer. CAHG will assist A2 with regulatory affairs and market access in China, which the company has said increases the strategic value of the deal. A2 Milk Company Ltd shares are up more than 2% after it announced it may make an acquisition.. What’s the acquisition? A2 Milk has acquired a majority stake in New Zealand company Mataura. "MVM provides a unique opportunity to acquire a new world class nutritional products manufacturing capability in New Zealand, alongside a highly respected China state-owned enterprise in China Animal Husbandry Group," he said. The triangle below illustrates the three firms occupying three different strategic positions. We are one of New Zealand's largest food production and supply groups. China Animal Husbandry is a subsidiary of another state-owned-enterprise known as China National Agriculture Development Group, which itself is the parent of a2's distributor in China, China State Farms. New Zealand-based a2 Milk Company (a2MC) has initiated negotiations to acquire a 75.1% stake in Mataura Valley Milk (MVM), a dairy nutrition business, for … The stake will cost A2 $NZ268.5 million ($250 million) and will be funded from the company’s existing cash reserves. CAHG’s parent company is the state-owned China National Agriculture Development Group, which also owns a logistics and distribution company in Shanghai which is a key partner for A2 Milk. Mataura Valley Milk is a nutritional company which sources its produce from one of the finest grass-producing regions in the world – Southland, New Zealand. 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