The a2 Milk Company plans $300M dividend

• The a2 Milk Company received approval from Chinese regulators to transition two infant milk formula registrations to its brand.
• The board intends to convene to declare a fully franked special dividend of $300 million.
• The transition marks the final step in the company's strategic integration of the Pokeno manufacturing facility.

The a2 Milk Company (ASX:A2M) has received Chinese regulatory approval to transition two infant formula registrations at its Pokeno facility, enabling an intended $300 million special dividend.

The company stated that the new products are expected to launch later this calendar year with no change to previously estimated financial benefits.

“SAMR approval marks a significant milestone in our China growth strategy and supply chain transformation,” said The a2 Milk Company Managing Director and CEO David Bortolussi.

Following the receipt of these regulatory approvals, the company confirmed it no longer holds the right to unwind the acquisition of the Pokeno facility.

Following the announcement the The a2 Milk Company share price was up at $6.71.

The company focuses on commercialising intellectual property related to protein-free dairy products across targeted international markets.

The regulatory progression follows the company's long-term strategy to secure its supply chain and enhance its infant formula manufacturing capability.