1st December 2020 By Bridget O'Connell | bridget@foodticker.co.nz | @foodtickernz
Synlait Milk has successfully raised $200m from retail investors after closing an oversubscribed $20m share purchase plan.
The Canterbury-headquartered company said it received applications totalling circa $59m for the SPP which was on offer to existing shareholders.
Some 3,938 shareholders applied under the SPP with an average application of approximately $14,943, according to Synlait. The cap was $50,000.
The SPP was part of Synlait’s $200m equity raising announced on 10 November 2020, the majority of which was funded via a $180m underwritten placement to institutional investors.
Its two cornerstone investors Bright Dairy Holding Limited and The a2 Milk Company had committed to buying $114m of the shares between them, with other existing institutional investors taking up the balance.
The new SPP shares would be issued at the same price as the placement of $5.10 – which was a 14% discount Synlait’s then previous last trading price of $5.93.
Synlait plans to use the proceeds of the cash call to complete the investment phase of its strategy, which would include the customisation of its facilities at Pokeno and Auckland with processing and packaging equipment to service its new, multinational customer.
Earlier this month Synlait said that $70m of investment would be required at the two facilities to meet the requirements of the manufacturing supply deal with the new, as yet unnamed, customer.
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