Thursday, 28 March 2024 10:55

Synlait shares in trading halt

Written by  Sudesh Kissun
Synlait's shares have been placed in a trading halt. Synlait's shares have been placed in a trading halt.

Listed Canterbury milk processor Synlait’s shares have been placed in a trading halt.

An announcement to the NZ Stock Exchange this morning says the company needs more time to finalise discussions with its banking syndicate, regarding an extension to a $130 million payment to its banking syndicate due today.

The company is also seeking financial support from major shareholder, Bright Dairy of China.

The company will unveil its half-year results on Tuesday, April 2 and earlier signalled a net loss in the range of $17 million to $21 million. Synlait recorded a $4.8 million net profit after tax for the same period last year. The trading halt is expected to remain until the half-year result announcement on Tuesday.

Synlait is also expected to give an update on the sale of its Dairyworks business, which it has been trying to offload since June last year.

Synlait is 39% owned by China’s Bright Dairy. A 19% stake is owned by a2 Milk Company, which is involved in a dispute with Synlait after trying to cancel an exclusive deal on manufacture and supply of A2 infant formula. The two parties failed to resolve the dispute during a binding arbitration process and have proceeded to arbitration.

Synlait shares have been hovering around 75c over the past two months. The shares were trading at around $3.50 at the beginning of last year.

More like this

Synlait could sell milk plant, canning facility

A poor half-year financial result is forcing listed Canterbury milk processor Synlait to carry out “a strategic review” of its North Island assets, including its new plant at Pokeno and blending and canning facility in Auckland.

Deal to bring cost relief for farmers

Listed milk processor Synlait is partnering with rural retailer Farmlands to deliver exclusive discounts to farmer suppliers, who have been battling high farm input costs for the past two years.

Featured

Farmers fined for cattle abuse

A Waikato cattle farming family have been fined $23,000 for failing to provide sufficient food and care for their animals, resulting in more than half a dozen animal deaths.

App trial yields promising results

An initial trial of an app, funded by Beef + Lamb New Zealand, has demonstrated significant results in reducing drench inputs during a small-scale study.

National

Back to the tractor!

Alliance Group chair Murray Taggart is looking forward to spending more time on farm as he steps down after a…

Machinery & Products

PM opens new Power Farming facility

Morrinsville based Power Farming Group has launched a flagship New Zealand facility in partnership with global construction manufacturer JCB Construction.

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

» Latest Print Issues Online

The Hound

Crazy

OPINION: Your canine crusader was truly impressed by the almost unanimous support given by politicians of all stripes in Parliament…

More!

OPINION: As this old mutt suggested in the last issue, MPI looks a very good candidate for some serious public…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter