Synlait Milk's response to complaint

Synlait Milk Limited (ASX:SM1) has been the subject of a complaint to the Takeovers Panel regarding a potential association between The a2 Milk Company Limited and Bright Dairy Holding Limited. The Panel met to consider the complaint and concluded that there was no reasonable possibility of association between Bright Dairy Holding Limited and The a2 Milk Company Limited in relation to the proposed allotment of shares in Synlait Milk Limited to Bright, which is to be voted on at Synlait's upcoming special shareholders' meeting.

Panel's decision and rationale

The Panel considered that each of a2MC and Bright were acting in pursuit of their respective commercial interests, rather than as part of a coordinated strategy relating to control over voting rights. Therefore, the Panel declined to call a section 32 meeting under the Act and will not take any further action in relation to this matter at this stage.

Summary of Panel's decision

The Takeovers Panel, an independent Crown entity established under the Takeovers Act 1993, has dismissed the complaint regarding the potential association between The a2 Milk Company Limited and Bright Dairy Holding Limited in relation to the proposed allotment of shares in Synlait Milk Limited. The Panel found no reasonable possibility of association and concluded that both companies were acting in pursuit of their respective commercial interests. As a result, the Panel declined to call a section 32 meeting under the Act and will not take any further action in relation to this matter at this stage.