Synlait Loses Third CEO in Five Years as Richard Wyeth Resigns
Troubled milk processor Synlait has lost its third chief executive in five years.
The final price has been set following a bookbuild to institutional investors and NZX firms. At this final price, Synlait Milk will have a market capitalisation of about NZ$322 million on completion of the IPO.
Synlait Milk chairman Graeme Milne said the response from New Zealand and international institutions and New Zealand retail brokers had been extremely positive.
"We have had an excellent response to our recent roadshow and bookbuild process, and as a result the final price has been set at $2.20 per share. There was strong support from a wide range of investors, comprising New Zealand and international institutional investors and New Zealand retail brokers. This is a strong market endorsement for the compelling fundamentals of the New Zealand dairy industry and in particular Synlait Milk's growth initiatives to accelerate the development of our Infant Formula and Nutritional products business."
The IPO comprises $75 million in new capital to repay debt and fund Synlait Milk's growth initiatives and a secondary offer of $38.7 million being 17.6 million existing shares originating from participating shareholders of Synlait.
Bright Dairy and Food will hold about 39.1% shareholding in Synlait Milk following completion of the IPO.
The offer will open on July 10, 2013 with the broker firm offer closing on July 19, 2013. There will be no general public offer. Investors are encouraged to contact their broker should they wish to participate. Trading of the shares (under the stock code 'SML') on the NZX Main Board is expected to start at 11am (NZST) on July 2013, 23.
Synlait Milk managing director and co-founder John Penno said the successful completion of the IPO would be another important milestone in the company's history and would assist Synlait Milk's growth as a niche producer of higher value dairy ingredients and nutritional products.
"We now look forward to the support of a wider pool of shareholders as we build on the reputation of our staff and suppliers to deliver excellence every step of the way from pasture to some of the world's leading milk-based health and nutrition companies."
Synlait Milk has registered a combined Investment Statement and Prospectus dated June 24, 2013 in relation to the IPO, a copy of which can be obtained at www.synlait.com. Applications for shares can only be made using the application form included in the Investment Statement and Prospectus. For further information on Synlait Milk please visit www.synlait.com.
