Synlait enjoys standout year

John Penno. Photo / NZ Herald
John Penno. Photo / NZ Herald

Just as Synlait Milk chief executive John Penno was preparing to list the company on the NZX in June, Holland's FrieslandCampina swooped in to pick up 7.5 per cent of the Rakaia-based dairy company.

Given FrieslandCampina's credentials, Synlait was more than happy to have the giant Dutch co-operative on the share register.

Since listing in July, shares in Synlait Milk have barely looked back. Today they trade at close to double their issue price of $2.20 a share. China's Bright Dairy has remained Synlait Milk's cornerstone shareholder with a 39.1 per cent holding.

Penno said at the time the successful initial public offer and sharemarket float was an endorsement of where the company was going.

The issue raised $75 million, which the company said it would use to repay debt and help fund construction of a new lactoferrin facility, among other things. Synlait expects its earnings for 2014 to come in ahead of forecasts.

- APNZ

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