Netherlands’ Royal FrieslandCampina takes 7.5% stake in Synlait Milk
The Netherlands-based co-op will take a $24.15 million stake, joining China's Bright Dairy and Food Co and Japan's Mitsui & Co as major shareholders.
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Royal FrieslandCampina, the Dutch dairy group which counts Fonterra boss Theo Spierings as alumni, has taken a 7.5 percent stake in Rakaia-based Synlait Milk as part of the local processor's initial public offering.
The Netherlands-based co-operative will take a $24.15 million stake in Synlait Milk, and joins China's Bright Dairy and Food Co and Japan's Mitsui & Co as major shareholders in the local dairy processor. Synlait Milk yesterday announced it would sell shares at $2.20 apiece in its float.
"Our working relationship with FrieslandCampina has developed over the years and they have become a valued customer," Synlait Milk chairman Graeme Milne says. "We view their investment as a positive endorsement of the growth opportunities we see for Synlait Milk in the coming years."
The Dutch dairy group was formed through the merger of Royal Friesland and Campina in 2008, a time when Mr Spierings was acting chief executive of Royal Friesland. He left the Dutch group shortly after the merger.
Synlait Milk will use 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.
(BusinessDesk)
Paul McBeth
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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Netherlands’ Royal FrieslandCampina takes 7.5% stake in Synlait Milk
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