Synlait to keep Pokeno plant but won't process milk
Troubled milk processor Synlait has dropped plans to sell its Pokeno milk plant in Waikato. However, it will consider offloading the plant if a “compelling offer” was made.
The listed company’s share price is hovering around $1.28/share.
Some analysts note that the projected fair value for Synlait Milk is NZ$2/share, based on 2 stage free cashflow to equity. The current price suggests Synlait is potentially 36% undervalued.
The 2023 annual results announced by Synlait didn’t really set the world alight. The feeling is that it’s crunch time for Synlait: either it shapes up or will be shipped out via a takeover bid.
