[ad_1]
The long legal battle over Synlait development in North Waikato is finally over.
In an announcement to the NZX on Friday, Synlait Milk Limited said an agreement had been reached between the dairy company, the New Zealand Industrial Park and Karl Ye over their land in Pokeno.
Synlait’s share price rose nearly 10 percent after the news and ended the day at $ 5.47, a 7 percent increase at the close of Thursday.
Chief Executive Leon Clement said Synlait was pleased to have the dispute behind it, which began in February 2018.
READ MORE:
* Supreme Court delays hearing on Synlait’s Pokeno land
* Synlait is allowed to appeal the construction of the Pokeno factory to the Supreme Court
* Rival Synlait warns of risk to infant formula from proposed quarry
“We are also pleased to provide security to Synlait shareholders, customers, agricultural suppliers and staff.”
The settlement price was “reasonable and not important to Synlait” and no further details will be released, Clement said.
SUPPLIED
Synlait’s Pokeno factory processed its first nutritional powdered milk in September last year.
The Supreme Court has been informed of the agreement.
The lengthy legal proceedings began shortly after Synlait bought a 28-hectare piece of land in the small north town of Waikato.
Construction of a nutritional powder plant on the site ran into trouble when neighboring landowner Karl Ye won a judgment from the Court of Appeal that reinstated the covenants on the land.
However, the Canterbury-based company continued with the project, an important step in obtaining milk from Waikato farmers and eliminating the risks associated with operating a single site.
SUPPLIED
Synlait CEO Leon Clement says the dairy company is pleased to have the dispute behind it.
The pacts, which allowed the land to be used only for agriculture, lifestyle blocks or forestry, were struck down by the High Court in November 2018.
Six months later, the Court of Appeal overturned the High Court decision and, in June 2019, Synlait filed a request for permission to appeal to the Supreme Court to have that decision overturned.
The factory processed its first nutritional powdered milk in September last year, and a hearing was held the following month to decide whether the case would be heard.
In November 2019, the Court announced that it would hear the case in April of this year but, due to Covid-19, the hearing was delayed until June.
