Synlait Milk Ltd. (AU:SM1) has released an update.
Synlait Milk Ltd. is embarking on a recapitalization effort involving a significant share placement to Bright Dairy, raising NZ$185 million and increasing Bright Dairy’s ownership to over 65%, and a smaller share placement to The a2 Milk Company, maintaining its stake at around 19.83%. These moves, along with the settlement of disputes and debt refinancing, are subject to various conditions and regulatory approvals, with shareholder approvals to be sought at an upcoming special meeting. The transactions, classified as Material due to their size relative to the company’s market capitalization, are crucial for Synlait’s financial restructuring.
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