Happy Valley Nutrition is developing a nutritional grade, vertically integrated milk processing, blending and canning plant, which will be a B2B supplier of consumer ready infant milk formula and other nutritional milk powder formulas.
Bell Potter Securities and Shaw and Partners are overseeing the listing.
The brokers were offering 100 million new shares at 20¢ each, according to terms sent to fund managers on Monday morning, and were calling for bids in an institutional bookbuild scheduled for October 24.
If successful, a prospectus would be lodged the following day, the term sheet said. Happy Valley Nutrition shares would start trading on a normal settlement basis on December 2.
Happy Valley is chaired by South African-born retailer Ivan Hammerschlag who made his fortune building the Freedom Furniture chain during the 1990s and founded and chaired ASX-listed RCG Corporation, which is now called Accent Group Ltd, and owns The Athlete’s Foot and other retail banners.
Funds raised would be used to build Happy Valley’s $280 million milk processing plant in Ōtorohanga located in the Waikato region, the largest milk catchment area in New Zealand.
General manager Greg Wood expects construction of buildings to get underway later in 2020 with first production planned for July 2022. Potential investors were told Happy Valley would require additional capital to fund its growth plans.
Happy Valley’s other directors include former Macquarie Infrastructure Group managing director Anthony Kahn and David McCann and Randolph van der Burgh, who were both involved in building the A+Puro infant formula brand.
The directors would hold a combined 9.5 per cent stake on listing, the term sheet said, while Happy Valley’s existing shareholders would retain a 50.5 per cent stake.