ATM’s commitment to supply

ASX Code: A2M
NZX Code: ATM



2 March 2017
ASX/NZX Market Release
a2MC’s commitment to supply
The a2 Milk Company (“a2MC” or the “Company”) is pleased to announce it will acquire a shareholding in Synlait
Milk Limited (“Synlait”), further strengthening the current business relationship between the two parties.

a2MC will acquire, through a subsidiary, ~8.2% of the fully paid ordinary shares in Synlait from FrieslandCampina
at a price of NZ$3.275 per share for total consideration of ~NZ$47.9m. This represents a ~3% premium to the NZX
one month volume weighted average price of NZ$3.18. FrieslandCampina had effectively signalled a change of
strategic intent for its shareholding by not participating in the capital raising completed by Synlait in October
2016.

The acquisition of shares follows a2MC’s reaffirmation of its infant formula supply agreement with Synlait in
August 2016. The supply agreement strengthened the business relationship between a2MC and Synlait by
providing certainty around medium term growth plans. This supply agreement will continue to be the cornerstone
of the commercial relationship between the two parties.

Commenting on the decision to purchase a shareholding in Synlait, a2MC Managing Director Geoffrey Babidge
said “The investment in Synlait builds upon our existing commercial ties with an innovative dairy processing
company. As Synlait’s preferred customer, this investment demonstrates a2MC’s commitment to supporting our
major contractor and we see this as a long term holding.”

In acquiring this stake in Synlait, a2MC has no plans to increase its shareholding beyond the present level. a2MC
believes its shareholding will provide stability to Synlait’s capital structure as it grows.

About Synlait
Synlait (NZX Code: SML; ASX Code: SM1) is an innovative dairy processing company based in the heart of
Canterbury, New Zealand. Listed on both the New Zealand and Australian stock exchanges, Synlait combines
expert farming, with state-of-the-art processing, to produce a range of nutritional milk products that provide
genuine benefits for health and wellbeing. Synlait has three leading-edge milk powder dryers, including a
purpose-built infant formula facility, the largest and most sophisticated in the Southern Hemisphere.


For further information contact:
The a2 Milk Company Limited
Geoffrey Babidge
Managing Director and CEO
+61 2 9697 7000