Synlait has announced that it will seek shareholder approval for a placement of new shares, which would result in Bright Dairy increasing its shareholding from 39.01% to 65.25%.
The notice of meeting for the approval has been distributed, with the special shareholders' meeting scheduled for September 18.
The Bright placement is also conditional on a concurrent placement of new shares to The a2 Milk Company.
If the placement is completed, a change of control event will occur for the SML010 bonds, giving holders the right to redeem their bonds early.
Synlait anticipates a redemption price of $1 per bond, plus accrued interest, if the trading price remains below $1.
Holders will have the option to elect for early redemption, with a suspension of bond trading requested for a 10-working day period.
If fewer than 50 million of the 180 million bonds remain outstanding after the early redemption, Synlait may choose to redeem all the remaining bonds, which would impact trading.
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