17 November 2000

Amelca seeks £9m from share offer

AMELCA, the farmer-owned business specialising in GM-free and organic milk, has launched a share offer to raise £9.6m.

"More than 270 producers have expressed interest and they now have until Dec 11 to sign up," says managing director Len Jackson.

The company wants to recruit about 150 dairy producers within a 25-mile radius of the site at Hilton, Derbyshire. Farmers can apply for shares at a discounted price of 92p each on the basis of one ordinary share for every 46 litres of quota held, or intended to be held, on Dec 31, 2001.

This would be deducted as a 2p/litre levy. This should raise about £3m, with most of the rest coming from City investors.

"We have already secured funding of about £28m, which includes a £9m loan from the Bank of Scotland and £10m from Lloyds Bank. This is enough to get the business up and running," adds Mr Jackson.

The plant plans to process about 150m litres of milk a year, starting in Dec 2001, increasing to 300m litres within five years. &#42