TasFoods Limited has raised $8 million towards its buy-up of the milk processing assets and brands of Betta Milk.
TasFoods raised the cash through a rights issue.
Eligible shareholders took up about 46 million of the 66.7 million new shares on offer and the rest went to a sub-underwriter.
"The company was very pleased with the high participation rate in the rights issue and wishes to thank shareholders for their strong support of its continued growth," Launceston-headquartered TasFoods said in a market announcement on Wednesday.
"All directors took up their full rights issue entitlement."
The Betta Milk sale agreement was announced in May, and was expected to cost TasFoods about $11.5 million.
The deal included Betta's export-accredited milk processing facility in Burnie, distribution centres in Launceston and Hobart.
Betta has market shares of 17 per cent of Tasmanian fresh milk sales and 37 per cent of branded milk sales, according to TasFoods. Betta aims to use funds from the sale to expand its Burnie-based Hellyers Road Distillery whisky business.
"The sale of the milk business will provide us with the funds to grow and expand whisky operations to take advantage of emerging demand from Europe, Asia and the United States," Betta chairman Neville Latimer said in May.
TasFoods executive chairman Shane Noble said: "This is an exciting step forward for TasFoods and represents the acquisition of a well-known Tasmanian brand that is highly complementary to our existing dairy brands."
"Betta Milk has excess production capacity, presenting multiple avenues for growth within Tasmania, other states and export markets."
This story first appeared in the Tasmanian Farmer
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