Right now one third of Synlait's sales are directed to China. Photo / NZPA
Shareholders of Synlait Ltd may sell 19 million shares of Synlait Milk as part of the dairy company's initial public offering while Bright Dairy won't participate in the sale, according to Synlait Milk's prospectus.
The Rakaia-based Synlait Milk will raise about $120 million from the IPO, of which $75 million
will come from new shares and the remaining $45 million from a selldown by Synlait Ltd investors, who include Japan's Mitsui & Co and Synlait Milk chief executive John Penno.
See the announcement here.
Synlait Milk is currently 51 per cent owned by China's Bright Dairy & Food Co and 49 per cent by Synlait Ltd. After the IPO, Bright Dairy's holding would fall to between 38.5 per cent and 40.7 per cent and the holding of Synlait Ltd investors would fall to between 24.2 per cent and 25.6 per cent.
Bright Dairy's shares would be unchanged at 57.2 million, while the Synlait Ltd shareholders reduce to 36 million. Total shares on issue jump to between 140.6 million and 148.8 million from 112.3 million currently. The actual split will depend on how many shares the Synlait Ltd investors sell.
