Synlait Milk has denied media reports suggesting it is in takeover talks with The A2 Milk Company and Fonterra.
Reports in Australia inferred the New Zealand dairy and infant-formula business could be the subject of a transaction involving the two peer groups.
However, in a stock-exchange filing today (17 August), Synlait said it “confirms that it is not involved in any discussions with The A2 Milk Company or Fonterra regarding the matters referred to in those reports”.
The company added that it "has no further comment at this time”.
A2 Milk said it does not comment on "speculation" when contacted by Just Food, while Fonterra had yet to respond.
Synlait is in the midst of a turnaround strategy after a series of profit warnings, financial losses, asset disposals and a bailout from its largest shareholders, China's Bright Dairy and A2 Milk.
In May, CEO Richard Wyeth stepped down after a year in the role, with director Leon Fung appointed acting CEO.
Wyeth’s exit came after the departure of the company's chief quality officer and chief supply chain officer.
The New Zealand- and Australia-listed company outlined a three-part “recovery” plan in March to “stabilise, simplify and scale” the business after reporting a first-half net loss of NZ$80.6m ($47.6m), against a NZ$4.8m profit a year earlier.
EBITDA swung to a loss of NZ$35m from a profit of NZ$63m and net debt rose 88% to NZ$472.1m, although revenue increased 3.5% to NZ$949m.
Wyeth said at the time the results were “frustratingly disappointing”.
In April, Synlait completed the sale of its North Island assets, including the Pokeno factory, to Abbott Laboratories as part of efforts to simplify the business and reduce debt.
Synlait has also relied on shareholder support to shore up its finances. Bright Dairy, its largest shareholder, owns about 65.25% of the company, while A2 Milk holds 19.8%.
In 2024, Bright Dairy provided a NZ$130m bailout loan and both shareholders have backed a NZ$217.8m equity raise.
A2 Milk and Synlait also settled a long-running contractual and pricing dispute in 2024, with A2 agreeing to make a one-off payment of NZ$24.8m to compensate for withheld payments.
