Synlait shares gain 7.8%; trading halted pending announcement

Monday, 9 November 2020

Synlait has settled a legal dispute over its Pokeno factory and has signed a supply deal with a new customer.

Shares in Synlait Milk have been halted from trading on the NZX pending an announcement by the company.

NZX Regulation said it had placed a trading halt on the shares at 2.47pm on Monday, at the request of the company. The halt would be lifted either after the company made an announcement, or at the market opening on Wednesday. No further details were provided.

Shares in Synlait have soared 11 per cent so far this month after the dairy manufacturer said it had settled a legal dispute hanging over its new factory in Pokeno, in Waikato, and had secured a new multi-national customer for production at the site.

The shares last traded up 7.8 per cent at $5.93 before being halted and have lost a third of their value this year.

“The share price has rallied strongly on the news that the legal disputes are now settled,” said Hamilton Hindin Greene director Grant Williamson. However, he said he was not aware of any other pending announcements that were due.

The company did not immediately respond to a request for comment.