Bright Dairy’s holding subsidiary launches IPO in New Zealand

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On the night of July 23, Bright Dairy (600597.SH) declared that its New Zealand-based subsidiary Synlait Milk was formally listed on the New Zealand stock exchange with stock code of SML.

Before the initial public offering, Bright Dairy held 57,247,600 shares of Synlait’s stocks, accounting for 51 percent of the total. Synlait is expected to raise 75 million NZ dollars by issuing 34,090,900 shares of stocks at a price of 2.2 NZ dollars per share. After the IPO, the total equity of Synlait will rise to 146 million shares, and Bright Dairy will still remain the No. 1 shareholder with its stock holding percentage falling to 39.12 percent.

The raised capital would help Synlait to pay down the existing bank loans and manage to conclude more favorable and much looser loan agreements with banks, which in return will enable Synlait to invest more into lactoferrin manufacture facilities, infant milk mixed filling line, warehouse, laboratory, butter factory, drying tower, etc. so as to optimize its current industry chain and retain more sufficient capital for replenishment of working capital.

According to Pan Jianjun, the spokesman of Bright Food (Group) Co., Ltd., the successful IPO of Synlait infuses powerful momentum into Bright Food Group for its globalization expansion. The listing not only helps releive the financial risks suffered by Bright Food Group from its M&A deals and reduce the assets and liabilities, but further promote the development of its core business - dairy products – in overseas market backed with fund channeled from overseas capital market.

“Such capital operation is amazing in its additive effect”, says Wang Zongnan, Chairman of Bright Food Group. “It is a pioneering initiative Bright Food Group and its overseas subsidiaries can learn from in how to be successfully listed on stock exchange market. It also marks a significant step Bright Food Group has taken for its globalization expansion and in tapping global capital market.”

As put forward by Bright Food Group in its strategic plan for 2013-2015, the leading domestic dairy player is determined to rise as a big transnational enterprise in the sector. Synlait, the first overseas company acquired by Bright Food Group back in October 2010, now takes the lead in going public on overseas stock market among Bright Food Group’s overseas subsidiaries, marking a solid step taken by the Group to realize its global vision.

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• Chairman of the Board of Supervisors Cui Zhiren visits the French company DIVA
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• President of Bright Group Cao Shumin Attended the Completion & Commissioning Ceremony of the Bright Dairy’s Milk Powder Plant in New Zealand
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• Bright Food (Group) Co., Ltd.

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