Chinese dairy food giant buys Canterbury company

14:39, July 19, 2010      

Email | Print | Subscribe | Comments | Forum 

A Chinese dairy food company has bought a controlling stake in New Zealand's Canterbury-based milk processing company Synlait Milk, New Zealand media reported on Monday.

Bright Dairy & Food will own 51 percent of the company, which it will use to source high-quality infant and whole-milk powders for sale in China, Radio New Zealand reported.

Subject to regulator and shareholder approval, Bright Dairy will invest 82 million NZ dollars (58 million U.S. dollars) in the New Zealand firm by becoming a majority partner in its processing arm.

As a result of the agreement, and subject to regulatory and shareholder approval, China's Bright Dairy and Synlait Limited will become joint owners of Synlait Milk.

Independent of the partnership and Bright Dairy, Synlait Ltd will continue to own and operate the Synlait farms through a separate company.

The partnership will be based around Synlait's manufacturing operations at Dunsandel which opened in August 2008. Synlait has relatively high debt.

Synlait Chairman Graeme Milne said the investment will allow the company to move ahead with its expansion plans, including a second dairy plant. He said the partnership will be focused on premium infant formula food products.

The move brings to an end an attempt by Synlait to find funding for the construction of a second production plant and to implement a sustainable long-term capital structure for the business.

Source:Xinhua

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
Hot Forum Discussion