Friday, 14 October 2016 12:27

Synlait completes $98m entitlement offer

Written by Rural News Group

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Synlait chairman Graeme Milne.

Synlait has successfully completed its pro rata entitlement offer announced on September 19, raising $98 million of new equity.

The funds will be used for a mix of debt repayment and contributing to a three-year circa $300 million capital growth project program.

“We’re very happy with the support our shareholders have shown during this offer and I’m pleased we were able to welcome new shareholders to our company at the same time,” says Graeme Milne, chairman.

Synlait’s largest shareholder, Bright Dairy, has maintained its 39.12% shareholding.

“As a growth company, we will continue pursuing profitable opportunities to make more from milk. Our planned growth projects are expected to enable us to take advantage of these opportunities and to solidify our international position as a trusted and innovative dairy manufacturer,” says Milne.

The growth projects will provide additional capacity for infant formula manufacturing, consumer packaging, infrastructure requirements and value added cream manufacturing.

John Penno, managing director and chief executive, added the process to dual list on the Australian Securities Exchange (ASX) is well underway.

“We expect to be trading on the ASX by the end of 2016 and look forward to strengthening existing and building new relationships with Australian investors in the near future,” says Penno.

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