Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Synlait Milk sets final share price at $2.20 apiece

Synlait Milk sets final share price at $2.20 apiece, valuing company at $322 mln

July 10 (BusinessDesk) - Synlait Milk will sell shares at $2.20 apiece before joining the NZX later this month, valuing the dairy processor at $322 million and making it the 43rd biggest company on the exchange.

The Rakaia-based company plans to raise $75 million of new capital, and existing shareholders will sell $38.7 million, or 17.6 million shares, in a secondary offer, listing on July 23, Synlait Milk said in a statement.

Cornerstone shareholder Bright Dairy and Food won’t participate in the offer, reducing its holding to about 39 percent from the 51 percent it acquired in 2010 after Synlait abandoned an earlier plan to go public because of tepid investor appetite after the global financial crisis.

The broker firm offer opens today, after the final price was set in a bookbuild to institutional investors earlier this week, and will close on July 19. There won’t be a general public offer.

“There was strong support from a wide range of investors, comprising New Zealand and international institutional investors and New Zealand retail brokers,” chairman Graeme Milne said in a statement. “This is a strong market endorsement for the compelling fundamentals of the New Zealand dairy industry and in particularly Synlait Milk’s growth initiatives to accelerate the development of our infant formula and nutritional products business.”

The float is the latest in a busy year for the stock exchange, and will increase the level of direct exposure investors can get to the dairy sector after exporter Fonterra Cooperative Group listed a unit trust last year and specialist milk processor A2 Corp joined the NZX 50 index amid rapid sales growth in Australia.

Synlait Milk will used the $75 million raised to repay debt and help fund construction of a new lactoferrin extraction and purification facility, an on-site blending and consumer packaging plant, a new dry store, a quality testing laboratory, a butter plant, and a new spray dryer, according to the prospectus.

The company is forecasting sales of $426.4 million in 2013, up from 2012’s $376.8 million, and for 2014 sales are forecast to rise to $524.4 million. Underlying earnings before interest and tax are forecast to almost double this year to $26.9 million and rise to $32.1 million in 2014.

Synlait Milk, which operates the largest purpose built infant formula plant in the southern hemisphere, said in May it would spend $15 million to expand production of lactoferrin as a spray dried powder to pharmaceutical standards.

Then company’s manufacturing site at Dunsandel currently has the capacity to process about 550 million litres of milk into 95,000 metric tonnes of products a year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO:

Māui And Hector’s Dolphins: WWF/Industry Counter Offer On Threat Management Plan

Forest & Bird says WWF-NZ's plan for protecting Māui dolphins is based on testing unproven methods on a species that is almost extinct, and is urging the Government to reject the proposal. More>>

ALSO: