Watershed vote pulls Synlait back from the brink
In a “watershed vote”, Synlait shareholders have approved a recapitalisation plan that hands over control of the listed milk processor to China conglomerate Bright Dairy.
The company says it has received approval from the New Zealand Overseas Investment Office (OIO).
A key feature of a2MC's proposed investment in Mataura Valley Milk is that current majority shareholder, China Animal Husbandry Group (CAHG), will retain a 25% interest alongside a2MC.
CAHG is a wholly owned subsidiary of China National Agriculture Development Group Co Ltd, which is also the parent company of a2MC's strategic logistics and distribution partner in China, CSFA Holdings Shanghai Ltd. (China State Farm).
Mataura Valley is a dairy nutrition business. A2 Milk says the transactin will be completed by end of the month.
"As previously advised, the proposed acquisition will provide the opportunity for a2MC to participate in nutritional products manufacturing, provides supplier and geographic diversification, and strengthens our relationship with key partners in China," the company says.
