Dairy giant The a2 Milk Company announced on Monday that it has increased its shares in Synlait Milk Limited to 19.9 per cent.
The company acquired shares at a price of NZ$4.95 per share, taking its interest in Synlait from 17.4 per cent to 19.84 per cent.
“Following the recent decline in Synlait’s share price, we viewed this as an opportunity to complete our strategic holding. Our shareholding reflects the importance to us of our commercial supply arrangements with Synlait,” a2 Milk’s acting CEO Geoffrey Babidge said.
a2 Milk said it has no plans to increase its shareholding in Synlait beyond that figure.
Earlier this month, a2 Milk signed a licensing agreement with Agrifoods in Canada.
Agrifoods manufactures Organic Meadow, Meadowfresh and Earth’s Own. The latest deal will see the NZ dairy giant handle the production, distribution, sale and marketing of a2 branded milk in Canada and help source out a2 milk’s from Canadian dairy farmers.
The company is still undertaking a search for a CEO following Jayne Hrdlicka’s departure late last year.