Synlait to trade on Unlisted market
Canterbury corporate dairy farmer Synlait Farms is to start trading on the Unlisted share trading market tomorrow giving shareholders and investors an easier way to sell and buy shares.
Synlait Farms is a separate company to its sister company Synlait Milk, the milk processing business 51 per cent owned by China's Bright Dairy and 49 per cent by Synlait Limited, which has several shareholders in common with Synlait Milk.
Synlait Farms has been split off from Synlait Ltd and owns and manages 13 dairy farms with 70 staff consisting of 3942 irrigated hectares and 12,970 cows in mid-Canterbury.
Synlait Ltd was founded in 2000 by dairy farmers Ben Dingle, Juliet Maclean and scientist John Penno to develop dairy farms in mid-Canterbury.
The company later developed a processing plant which opened in August 2008 and Chinese Bright Dairy bought into it in late 2010 enabling the expansion of the plant.
The milk processing business was split off to become Synlait Milk. The founders control Synlait Farms. Dingle and Maclean hold 17.4 per cent each and Penno 15.25 per cent, while the rest is held by smaller shareholders.
Unlisted is a trading facility but is not a registered stock exchange. The rules of Unlisted are easier on companies than those of the New Zealand Stock Exchange.
Unlisted manager David Wallace said: "We are delighted that Synlait Farms has chosen to have its shares quoted on Unlisted."
Maclean said: "Synlait Farms is pleased to quote its securities on Unlisted and provide options to enhance liquidity to shareholders.
"The directors consider that Synlait Farms' shareholders may benefit greatly from having a transparent market price for their shares and a simple yet effective trading option."