Synlait Milk Plans North Island Asset Sale to Abbott for $178 Million

Synlait Milk Ltd. is set to sell its North Island assets to global healthcare leader Abbott for approximately US$178 million, a move aimed at reducing debt and strengthening its financial position. This strategic asset sale, which includes the Pōkeno factory and other facilities, is expected to simplify operations by allowing Synlait to focus on its South Island activities and improve its creditworthiness. The transaction, subject to regulatory approvals, is anticipated to close by April 2026 and is part of Synlait's broader plan to enhance operational performance and support future growth opportunities. The company reported improved fiscal results for FY25, including a net profit after tax of $0.8 million and reductions in net debt, signaling a positive turnaround. Shareholders have voted in favor of the sale, and the upcoming Annual Meeting will finalize discussions on the sale's terms and other corporate matters. Despite these developments, analysts currently rate Synlait's stock as a Sell with a price target of A$0.58, reflecting market caution amid the transition.