Tuesday 20th July 2010 |
Text too small? |
Kiwi investors who spurned the chance to buy shares in Synlait’s milk processing unit last year may get another shot at buying into the business, with its new Chinese partner supportive of a float in the next five years.
China’s Bright Dairy & Food, which has agreed to buy a majority shareholding in Synlait’s milk processing vehicle Synlait Milk for $82 million, supports the New Zealand’s company’s plan of listing within three to five years of the joint venture, it said in a statement to the Shanghai Stock Exchange. If Synlait Milk lists, Bright Dairy will be entitled to subscribe to new shares to keep its 51% holding, which the Chinese company said is a long-term investment.
Synlait, which abandoned a $150 million share sale to list on the NZX last year due to a soft response from investors, is seeking funds to build a second drier at its main site to help boost its milk powder capacity.
The Bright Dairy deal is hot on the heels of Hong Kong-listed Natural Dairy (NZ) Holdings’ bid to buy up $1.5 billion of land and facilities, including the Crafar family farms, to capitalise on New Zealand’s reputation of producing premium quality dairy products.
Bright Dairy will hold a shareholders’ meeting next month to discuss the deal, which is subject to regulatory approval from the Overseas Investment Office.
The Chinese company is a subsidiary of Bright Food Group, the biggest food company in Shanghai. Earlier this month Bright Food unsuccessfully tried to buy CSR’s Australian sugar unit.
Businesswire.co.nz
No comments yet
Spark New Zealand appoints new director to the Spark Board
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report
AGL - Change in Senior Management
Devon Funds Morning Note - 01 May 2024
Rick Christie to step-aside as a non-executive director