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a2MC Backs Synlait’s Major Recapitalization Move
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a2MC Backs Synlait’s Major Recapitalization Move

Synlait Milk Ltd. (AU:SM1) has released an update.

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The a2 Milk Company Limited (a2MC) has announced its participation in a strategic equity raise for Synlait Milk Limited, aimed at reducing Synlait’s debt through a NZ$217.8 million recapitalization plan. This includes a significant share purchase by Bright Dairy Holding Limited, and a2MC’s own NZ$32.8 million investment to maintain its 19.83% stake. The recapitalization and subsequent bank refinancing will aid in settling ongoing arbitration disputes between the two companies and ensure continued operations at Synlait’s key Dunsandel manufacturing site.

For further insights into AU:SM1 stock, check out TipRanks’ Stock Analysis page.

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