By Stephen Wright 



  WELLINGTON, New Zealand--Infant formula marketing company a2 Milk Ltd. said it has conditionally offered 270 million New Zealand dollars ($177 million) for a 75.1% stake in Mataura Valley Milk so it can expand into manufacturing. 


  The acquisition, which is subject to due diligence and regulatory approvals, would give a2 Milk infant nutrition production capacity to support the growth of its infant-formula business in China, the New Zealand company said Friday. 


  China Animal Husbandry Group, a unit of a2 Milk's business partner in China, would retain a 24.9% stake in Mataura Valley Milk. 


  "Our intention would be to invest further to establish blending and canning capacity at Mataura's facility to support the establishment of a fully integrated manufacturing plant for infant nutrition," a2 Milk chief executive Geoff Babidge said. 


  An investment in Mataura Valley Milk would build on existing milk supply relationships with Synlait Milk Ltd. and Fonterra Cooperative Group, he said. 


  Write to Stephen Wright at stephen.wright@wsj.com