Dutch dairy giant FrieslandCampina is to take a stake in New Zealand infant formula and dairy ingredients company Synlait Milk, which is set to float this month.

FrieslandCampina said it will buy a 7.5% stake in Synlait when the company lists in New Zealand on 23 July.

COO Roelof Joosten said: “In recent years, we have developed a close working relationship with Synlait Milk, a supplier of high-quality raw materials. With this investment, we are supporting our supply of raw materials and also the growth of Synlait Milk.”

At present, Synlait Milk is owned by China’s Bright Dairy and Synlait Ltd, a private New Zealand company part-owned by Japan’s Mitsui. Bright, which owns 51% of Synlait Milk, will see its stake reduced to around 40% after the IPO. Mitsui will also still hold a stake in the business after the listing.

Synlait Milk has said the IPO on the New Zealand stock market should raise NZ$75m (US$58.4m) in new capital to help reduce debt and press on with capital projects.