Synlait Milk Ltd. (AU:SM1) has released an update.
The a2 Milk Company Limited (a2MC) has announced its participation in a strategic equity raise for Synlait Milk Limited, aimed at reducing Synlait’s debt through a NZ$217.8 million recapitalization plan. This includes a significant share purchase by Bright Dairy Holding Limited, and a2MC’s own NZ$32.8 million investment to maintain its 19.83% stake. The recapitalization and subsequent bank refinancing will aid in settling ongoing arbitration disputes between the two companies and ensure continued operations at Synlait’s key Dunsandel manufacturing site.
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