Synlait Milk Limited Completes North Island Asset Sale

Synlait Milk Limited (ASX: SM1) has finalized the sale of its North Island assets to global healthcare company Abbott for NZ$307 million (US$178 million). This transaction, which includes the Pōkeno manufacturing facility, inventory, and leasehold sites, marks a key milestone for Synlait. CEO Richard Wyeth emphasized that this sale would simplify the company’s operations and support its recovery, allowing a renewed focus on its founding region in Canterbury. The gross proceeds amount to NZ$283.1 million (US$164 million), with NZ$200 million earmarked to reduce bank debt. Despite the debt reduction, Synlait acknowledges the need for further work following manufacturing challenges in FY25. The sale is expected to strengthen the company’s balance sheet, with ongoing refinancing discussions for its banking facilities. The remaining debt includes a NZ$130 million shareholder loan due in mid-2026.

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