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Wednesday, 04 October 2023 13:15

Takeover talk

Written by  Milking It

OPINION: Could Canterbury milk processor Synlait be a prime candidate for a takeover bid?

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.

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