Why The Synlait (ASX:SM1) Share Price Fell 4%

The Synlait Milk Ltd (ASX:SM1) share price dropped 4% today after making two ASX announcements.

Jaz Harrison
May 10, 2019

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.

[ls_content_block id=”18457″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #563 907.

Jaz Harrison

Jaz is a Staff Writer for Rask. She is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.

More analysis

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account. (Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)