a2 Milk company issues shares, Challenger adjusts stake

The a2 Milk Company Limited (NZX:ATM) announced the issue of 1,407,076 ordinary shares, representing 0.19% of its total ordinary shares on issue. These shares were issued to employees under the company's Long Term Incentive Plan following the vesting and automatic exercise of performance rights, as authorized by board resolutions. This issuance increases the total number of ordinary shares (excluding treasury stock) to 725,426,194. A total of 1,915,124 performance rights converted into ordinary shares. An additional 65,175 performance rights lapsed, and 5,220,336 performance rights remain to be converted.

In related news, Challenger Limited disclosed that it ceased to be a substantial product holder in The a2 Milk Company Limited as of August 22, 2025. This change occurred through on-market and off-market transactions. Challenger's total percentage held in the class of ordinary fully paid shares decreased from 5.04% (36,476,524 shares) at its last disclosure on August 25, 2025, to 4.97% (36,001,098 shares) in its current holding after ceasing to be a substantial holder. The reporting date for the substantial holding cessation notice is August 26, 2025.