Bellamy's shares jump

09 Aug, 2017 04:09 PM
Comments
0
 
The shock suspension of Camperdown's China export licence put Bellamy's into a trading halt that lasted for almost two weeks.
Bellamy's appreciates the important role the CNCA has in protecting Chinese consumers...
The shock suspension of Camperdown's China export licence put Bellamy's into a trading halt that lasted for almost two weeks.

Shares in infant formula maker Bellamy's have rocketed to their highest level this year after the company confirmed that its recently acquired Melbourne factory had got its China export licence back.

In a statement to the ASX on Wednesday morning, the Tasmanian-based company said the licence suspension had been lifted, adding it had "diligently responded to all requests and queries on behalf of the CNCA (Certification Accreditation Administration of the People's Republic of China) and worked, with the assistance of Australian officials, through the process as stipulated by the Chinese authorities".

At the time of the announcement, Bellamy's stock was trading at about $8.04, but promptly soared after to hit a high of $8.75 just before midday on Wednesday.

Bellamy's CEO Andrew Cohen said in the statement to the ASX the company was "pleased that Camperdown's suspended registration has today been lifted. Bellamy's appreciates the important role the CNCA has in protecting Chinese consumers and the support of the Australia trade officials in assisting us throughout this process."

The suspension of the licence of the Camperdown Powder canning facility, in the bayside Melbourne suburb of Braeside, in early July came as a major shock to the company and its investors. Just a few weeks earlier, Bellamy's acquisition of the canning facility had been unveiled as a key initiative underpinning its turnaround plan and announced along with plans for a $60.4 million capital raising.

At the time, the company said the acquisition of a 90 per cent interest in the Camperdown business, for total consideration of $28.5 million, "provides an opportunity to reduce key regulatory risks". It also said its board believed the acquisition "strengthens Bellamy's competitive position, by addressing trade and consumer concerns regarding CFDA registration and a contract manufacturing model".

The shock suspension of Camperdown's China export licence put Bellamy's into a trading halt that lasted for almost two weeks. It also forced Bellamy's to offer retail shareholders the opportunity to hand back new shares they had acquired in the company via the capital raising, and get their money refunded.

When Bellamy's emerged from its two-week trading halt on July 20, the stock traded like a yo-yo, falling to $5.88 before recovering to close that day at $6.40. This meant people who took up extra shares in the capital raising, priced at $4.75 a share, would have made a quick windfall profit.

Want to read more stories like this?

Sign up to receive our e-newsletter delivered fresh to your email in-box twice a week.

Click here

Page:
1
AGE

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
Effective pasture management is one of the most important aspects of successful dairy production, yet many dairyfarmers are not using pasture measurement equipment.17 Feb 18 Effective pasture management is one of the most important aspects of successful dairy production, yet many...
ALLORA, Qld, dairy farmers Andrew and Chris Mullins, Queensland, have been operating in partnership for the past ten years and have a clear vision on how they produce, plus manage, their forage feeding systems. 
05 Feb 18 ALLORA, Qld, dairy farmers Andrew and Chris Mullins, Queensland, have been operating in partnership for the past ten...
light grey arrow
Received your email re Crozier Street, V/Harbor. As one of many residents in Rapid Drive,
light grey arrow
The dairy industry has so distressed me and members of my family that my adult daughter is
light grey arrow
Just wondering if it is true that you will be discontinuing the Devondale long life cream
Like a lot of dairyfarmers, Steven and Leanne Wieland's Boonah, Qld, business has grown in the past decade.13 Feb 18 Like a lot of dairyfarmers, Steven and Leanne Wieland's Boonah, Qld, business has grown in the past decade.
A Western Australian dairyfarmer says his simple effluent management system is the most cost-effective and labour efficient for his farm.
06 Feb 18 A Western Australian dairyfarmer says his simple effluent management system is the most cost-effective and labour...
Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.