Synlait, a2 Milk reach conditional $24.75m settlement

Synlait and The a2 Milk Company have reached a conditional settlement to resolve all disputes subject to arbitration.

As part of the settlement, The a2 Milk Company will make a one-off payment to Synlait of around $24.75 million.

The agreement also includes the cessation of Synlait's exclusivity under the Nutritional Powders Manufacturing and Supply Agreement from Jan 1 2025.

However, Synlait expects to continue producing all products under the agreement in the short term.

The settlement is dependent on Synlait completing an equity raise and a refinancing of its existing banking facilities.

Synlait CEO Grant Watson expressed satisfaction with the resolution, stating that it was a positive step forward in the company's business recovery plan.