Synlait Milk Limited has renegotiated aspects of its thorough manufacturing and supply arrangements with The a2 Milk Company (ASX: A2M), which has strengthened the companies’ long-term partnership.
Key Highlights of Revised Agreement:
- A two-year increase to the term of the agreement, essentially providing for a new minimum term to, at the earliest, 31 July 2025;
- An increase in the volume of nutritional products over which Synlait already has exclusive supply rights;
- Increased committed production capacity from Synlait;
- Pricing terms that reflect the dedication on the part of both companies to an ongoing market competitive pricing regime.
At AEST 01:16 PM, the stock was trading at $13.500 per share, up by 12.313% from its previous close.