Synlait poised to reveal international backer

Photo / Brett Phibbs

Synlait, the milk processor that abandoned a $150 million share sale last year after a tepid response from investors, is set to announce it has found a new backer.

The Canterbury-based milk processor will hold a media conference at noon today to announce "a new partnership with a major participant in the international dairy industry," according to an emailed advisory note. The partnership involves "a significant investment in Synlait's processing operations at Dunsandel, Canterbury, to further its value added strategy."

Synlait, which aims to expand its milk powder capacity, is seeking funds to build a second drier at its main site. It currently processes 70 million litres of milk a year, according to its website.

Present shareholders include Japan's Mitsui and Co, which acquired a 14 per cent stake in 2007 for $13.5 million, implying a capitalisation of $96 million. Mitsui also made a further $16.5 million loan available to Synlait at that time.