The a2 Milk Company (“a2MC”) is pleased to announce it will increase its shareholding in Synlait Milk Limited.
a2MC will acquire, through a subsidiary, an additional ~8.3% of the fully paid ordinary shares in Synlait from Mitsui & Co. at a price of NZ$10.90 per share for total consideration of ~NZ$161.8m. This represents a modest discount to the NZX one month volume weighted average price of NZ$11.16.
The acquisition of shares follows a2MC’s reaffirmation of its infant formula and other nutritional products supply agreement with Synlait in July 2018. This supply agreement will continue to be the cornerstone of the commercial relationship between the two parties.
Commenting on this increased shareholding in Synlait, a2MC Managing Director Jayne Hrdlicka said “This investment in Synlait is consistent with The a2 Milk Company’s commitment to long-term supply arrangements with high quality partners such as Synlait Milk and Fonterra Co-operative Group.”
a2MC has no plans to further increase its shareholding in Synlait.
A copy of the full announcement can be found here.