13 November 2000
Amelca seeks 150 milk producers
By FWi staff
AMELCA, the farmer-owned milk business specialising in GM-free and organic milk, has launched its public offer for subscription to raise 9.6 million.
The company is looking to recruit about 150 dairy producers within a 25-mile radius of the site at Hilton, Derbyshire.
They will contribute about 3m through a 2ppl shareholder levy.
More than 270 producers who have expressed interest in the company will now have until 11 December, 2000 to sign up to the offer.
“The 15-month establishment phase has started, and completion is expected by December 2001,” said Len Jackson, Amelca managing director.
The company has already secured funding of about 28m, including a 9m loan from the Bank of Scotland and 10m from Lloyds Bank.
The money is expected to cover costs and get the business up and running.
Farmers can apply for one discounted ordinary share at a price of 92p for every 46 litres of quota held, or intended to be held, on 31 December, 2001.
The plant plans to process about 150m litres of milk a year, increasing to 300m litres within five years, said Mr Jackson.
If all goes well, investment benefits could add up to about 3p per litre (ppl), including a premium of 1-1.25ppl, on top of a guaranteed 1ppl premium.