Synlait Milk Denies Reports of Joint Takeover Bid

Synlait Milk denied reports that it is engaged in takeover discussions with Fonterra and The a2 Milk Company. The denial follows a report in The Australian suggesting the two dairy groups were exploring a joint bid to take the New Zealand-listed processor private, with Fonterra potentially serving as a funding partner for a2 Milk.

Synlait stated it "is not involved in any discussions with The a2 Milk Company or Fonterra regarding the matters referred to in those reports." The speculation comes as the company undergoes restructuring to strengthen its balance sheet after years of high debt and weak earnings. Recent efforts include a major refinancing in June and the sale of its North Island operations to Abbott.

Ownership of the processor is currently dominated by Bright Dairy, which holds a 65.25% stake, while The a2 Milk Company maintains a significant shareholding of approximately 19.8%.