A2 Milk Shares Rise Amid Endorsement for $130 Million Synlait Loan
Source: The DairyNews
A2 Milk Co Ltd (ASX: A2M) shares saw an uptick today following the company's announcement of its backing for a substantial $130 million shareholder loan to Synlait Milk Ltd (ASX: SM1).
This move is part of Synlait's broader recapitalization strategy, which also includes proposed equity raising and refinancing of its banking facilities.
The positive response from investors has propelled A2 Milk shares up by 0.8% to $6.88 in morning trading, closely following a 0.9% rise in the broader S&P/ASX 200 Index. Synlait shares also surged by 50% to 34.5 cents, signaling strong market approval of the recapitalization efforts.
The loan, provided by Bright Dairy—which holds a 39% stake in Synlait but is barred from voting on the proposal due to New Zealand trading regulations—aims to support Synlait's immediate financial obligations. The funds from the loan are earmarked for a critical $130 million bank payment due on July 15.
Corporate Governance and Future Outlook:
A2 Milk, holding nearly 20% of Synlait's shares, expressed ongoing concerns about the latter's financial strategies but confirmed its support for today's crucial shareholder resolution. Synlait's management, under the chairmanship of George Adams, is vigorously pursuing structural changes to stabilize the company's finances and foster growth in its Advanced Nutrition and Foodservice sectors.
Julia Zhu, a director at Bright Dairy, emphasized their deep commitment to Synlait, viewing its assets as valuable contributors to both regional and global dairy markets. The loan is part of a larger framework aimed at rejuvenating Synlait's financial and operational health swiftly within the current economic cycle.
The positive response from investors has propelled A2 Milk shares up by 0.8% to $6.88 in morning trading, closely following a 0.9% rise in the broader S&P/ASX 200 Index. Synlait shares also surged by 50% to 34.5 cents, signaling strong market approval of the recapitalization efforts.
The loan, provided by Bright Dairy—which holds a 39% stake in Synlait but is barred from voting on the proposal due to New Zealand trading regulations—aims to support Synlait's immediate financial obligations. The funds from the loan are earmarked for a critical $130 million bank payment due on July 15.
Corporate Governance and Future Outlook:
A2 Milk, holding nearly 20% of Synlait's shares, expressed ongoing concerns about the latter's financial strategies but confirmed its support for today's crucial shareholder resolution. Synlait's management, under the chairmanship of George Adams, is vigorously pursuing structural changes to stabilize the company's finances and foster growth in its Advanced Nutrition and Foodservice sectors.
Julia Zhu, a director at Bright Dairy, emphasized their deep commitment to Synlait, viewing its assets as valuable contributors to both regional and global dairy markets. The loan is part of a larger framework aimed at rejuvenating Synlait's financial and operational health swiftly within the current economic cycle.
23.09.2024
Carbon emissions in global milk production - the elephant in the room
I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
