A2 Milk has declared a $300 million special dividend to shareholders following Chinese regulatory approval for its Pōkeno facility.
The dividend of 41.36 cents per share will be paid on 24 July. Chinese authorities have approved the transition of two China-label infant formula registrations from the Pōkeno facility into A2-branded products.
A2 acquired the Pōkeno plant from Yashili last year for $282 million. Chair Pip Greenwood said the company was pleased to announce the payout now the regulatory approval had been secured. "This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management," she said.
Chief executive David Bortolussi described the Chinese regulatory approval as a significant milestone in the company's China growth strategy.
A2 shares gained around 6% in late morning trading on Thursday after the announcement.