The Synlait Milk Ltd (ASX: SM1) share price dropped 4% today after making two ASX announcements.
Synlait Milk is a New Zealand based dairy processing company which produces a range of milk and milk powder related products such as infant formula.
Synlait’s Announcements
In February 2018 the company announced the conditional purchase of 28 hectares of land in Pokeno to build its second nutritional powder manufacturing site.
Synlait said that due to the Pokeno land being rezoned industrial land from grazing land, and the development in the Pokeno area including the building of another dairy plant, Synlait was confident the land covenants no longer remained relevant, which was confirmed in November 2018 when the High Court removed the covenant.
Synlait only took legal title of the land after the High Court decision, but this was subsequently reversed yesterday.
The CEO of Synlait, Leon Clement, said: “Yesterday’s Court of Appeal decision was unexpected. We intend to continue with our plans at Pokeno.”
The company will continue to engage with all parties involved and remains committed to the location.
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