Synlait has announced a recapitalisation plan, which includes $217.8 million of new equity, and the company is now in the final stages of refinancing its bank facilities.
The recapitalisation is conditional on the approval of shareholders and a special meeting has been scheduled for Sept 18 2024.
The plan involves the issuance of $185m worth of shares to Bright Dairy at $0.60 per share, increasing Bright Dairy's shareholding in Synlait from 39.01% to 65.25%.
Additionally, $32.8m worth of shares will be issued to The a2 Milk Company at $0.43 per share, allowing a2MC to retain its 19.83% holding.
The completion of the recapitalisation and bank refinancing is expected to take place on Oct 1 2024.
If the resolutions are not passed, Synlait warned that it may have to cease trading and initiate a formal insolvency process.
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