If Synlait does not have a good financial year, there is a “very good chance” of another capital raise to bail out the processor in 12 months, chair George Adams says.
Shareholders of the embattled New Zealand Exchange (NZX) listed dairy manufacturer voted in favour of an equity raise on Wednesday morning. Chinese company Bright Dairy contributed $185 million and increased its Synlait holding to more than 65%.
Synlait’s second-largest shareholder, The a2 Milk Company, contributed $32.8m to maintain its 19.8% stake.
Minority investors’ overall stake in the company will reduce from 41.2% to 14.9%.
In the end, more than 90% of votes were cast in favour of the three resolutions for Bright and a2 to put in the new money and to amend the firm’s constitution.
