Bellamy's set to raise equity for canning purchase, Credit...

Bellamy's set to raise equity for canning purchase, Credit Suisse on board

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Street Talk. Louie Douvis

• by
• Sarah Thompson
• Anthony Macdonald
• Joyce Moullakis

Bellamy's Australia is set to embark on a $60.4 million rights issue to fund the acquisition of a new canning factory.
Credit Suisse is overseeing the rights issue.
The company's shares went into a trading halt on Tuesday morning ahead of the offer.
Bellamy's has been in the market for a new organic infant formula packing and canning facility, after its existing partner Bega Cheese sold its Tatura Milk canning plant to American Mead Johnson.

It's previously been linked to Melbourne-based Blend and Pack, which has a China accredited processing and packaging plant.
The acquisition and raising comes after a shake-up at Bellamy's, which has seen Janchor Partners' John Ho join the board and Andrew Cohen take over as chief executive officer.
The infant formula company's shares have stabilised around the $5 mark in recent weeks, however that is still well off the $12-plus mark where it was as recently as late last year.