Dutch giant increases Synlait Milk stake
Giant Dutch dairy company Royal FrieslandCampina has upped its stake in Canterbury milk processor Synlait Milk to a strategic level.
Synlait's shares rose 3 cents to $3.90 today on the back of the news.
Synlait said it welcomed FrieslandCampina increasing its stake from 7.5 per cent to just under 10 per cent.
The Dutch company is a customer of Synlait Milk and Synlait chairman Graeme Milne said their working relationship continued to develop.
"They have become a valued customer and key strategic partner, alongside our other first-tier multinational customers and we view this announcement as a positive endorsement of the growth and performance of Synlait Milk," he said.
FrieslandCampina sold products in more than 100 countries and had annual revenue of about €10.3 billion (NZ$16.7b).
It bought into Synlait when the processor listed on the NZX and issued shares to the public in July last year.
FrieslandCampina and others taking part in the initial public offering of shares bought them for $2.20 each.