FrieslandCampina Investments Holding B.V.(1), a subsidiary of Royal FrieslandCampina N.V., has purchased a 7.5 percent interest in Synlait Milk Ltd. The dairy company is located in New Zealand’s South Island, near Christchurch. Completion of this transaction is subject to listing of Synlait Milk Ltd on the New Zealand Stock Exchange, which is expected to occur on 23 July 2013 (NZST)(2). With this initial public offering the company wants to raise capital to finance its growth.
Synlait Milk plans to use the capital raised to finance, among other things, a new spray dryer and an on-site blending and consumer packaging plant. By acquiring this interest, FrieslandCampina is supporting the company’s growth ambitions.
Roelof Joosten, Chief Operating Officer of FrieslandCampina Ingredients: “In recent years, we have developed a close working relationship with Synlait Milk, a supplier of high-quality raw materials. With this investment, we are supporting our supply of raw materials and also the growth of Synlait Milk.”
Synlait Milk began processing milk in 2008 and currently has the capacity to process 550 million litres of raw milk, which it procures from around 155 dairy farms in the Canterbury region, into approximately 95,000 metric tonnes of products each year. The company focuses exclusively on business customers.
(1) FrieslandCampina does not guarantee the ordinary shares of Synlait Milk Ltd.
(2) Application has been made to NZX Limited (NZX) for permission to list Synlait Milk, and to quote the ordinary shares of Synlait Milk on the NZX Main Board. All requirements of NZX relating to that application that can be complied with on or before the date of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement. The NZX Main Board is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988.