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Synlait Farms offers investment opportunity
1 December 2011
Synlait Farms offers investment opportunity
The board of Synlait Ltd is seeking an investment partner for its wholly-owned subsidiary Synlait Farms. An investment memorandum has been prepared and proposals from potential investors are being sought by 20 December.
The original founders of Synlait Ltd remain committed to the business and are very positive about the future direction of the subsidiary company, says Synlait Ltd board chairman Barry Brook.
“Following an initial period of significant growth, over the last few years Synlait Ltd has been focused on improving the performance of its farm portfolio and building strong management systems and processes.”
“We are seeking an investor at this point to better position the dairy farming business and take advantage of identified growth opportunities. Synlait Farms has developed the platform and capability to take advantage of these opportunities and we are seeking a partner to support management’s growth plans,” says Mr Brook.
“The Synlait Ltd Board considers it an opportune time to seek investor interest due to the positive international demand for protein and recent investment activity in agriculture in New Zealand and globally. However, Synlait Ltd has strengthened its balance sheet and is generating strong cash flows and will only enter into a transaction on terms that fairly reflect the value of the business.”
As a result of the proposed transaction, Synlait Farms and Synlait Milk will operate independently with different shareholders, but will continue to maintain a strong customer-supplier relationship.
Synlait Farms owns 13 dairy farms in Canterbury making it one of the largest dairy farm operations in New Zealand with a total land holding of 4,820 hectares.
Synlait Farms CEO Juliet Maclean says management has plans to significantly grow Synlait Farms through productivity improvements, irrigation development and the acquisition of complementary dairy farms where management can improve performance.
M C Capital Ltd has issued the investment memorandum on behalf of Synlait Ltd.
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