Synlait CEO Resignation Highlights Deeper Challenges Facing Dairy Processor
A revolving door of chief executives at milk processor Synlait is a warning sign, says Lincon University senior lecturer in agribusiness Nic Lees.
Over the past year alone, the share price has lost 82% of its value, leaving the troubled company with a market capitalisation of only $65m.
There are only two options for Synlait. Either it has to sell assets or it has to raise more share capital.
But no one wants to buy its $400m under-utilised Pokeno plant and not too many shareholders are keen for a capital raise either. Something has to give.
