No mention of who's radar but I'm 100% sure it's no longer on...

No mention of who's radar but I'm 100% sure it's no longer on Freedom Food's.

A2Milk back on takeover radar as it struggles with loss of daigou trade

With A2 Milk shares stuck firmly inthe doldrums, market chatter suggests the battered dairy supplier could be backon the radar of potential suitors keen for a slice of the premium margins thecompany’s products command.

Over the past year, A2’s marketcapitalisation has plunged from close to $14.8bn to $5.3bn, as themoribund daigou trade market between China and Australia bites into the company’searnings.

Goldman Sachs analyst Belinda Moorelast week told clients that A2 faced another earnings downgrade if the tradedidn’t pick up, saying market soundings suggest the dairy major was likely tomiss earnings forecasts and warning that a fourth downgrade “would be anotherblow to A2’s credibility”.

The daigou tradethat sent A2 shares soaring before the pandemic was partly the result ofstudents and travellers buying product in Australia and sending it home toChina, and in part is the result of more organised traders that deal withproducers such as A2 directly.