The a2 Milk Company
(ASX:A2M) has announced it will acquire a 8.2% shareholding in New Zealand dairy processing company, Synlait Milk Limited
(ASX:SM1).
a2 Milk will buy the (8.2% of) fully paid ordinary Synlait shares at NZ$3.275 per share, for a total of NZ$47.9 million.
a2 Milk says the purchase is a 3% premium to its New Zealand Securities Exchange (NZX) one month average price.
The investment in Synlait, along with their supply agreement are the cornerstone of its medium term growth plan.
The a2 Milk Company
(ASX:A2M) reported NZ$39.4 million net profit after tax for the first half of the 2017 financial year (1H17)
