George Adams: Synlait chairperson ahead of Thursday's vote to approve $130 million loan from Bright Dairy

Synlait Milk's future is hanging in the balance ahead of an upcoming vote impacting the company.

On Thursday, a shareholders meeting will take place to determine if a $130 million dollar loan from China's Bright Dairy will be approved.

Synlait chair George Adams unpacks the significance of the upcoming vote.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Teetering dairy processing company Sinlay's do or die shareholder voters
this Thursday, and a major shareholder is keeping mum on
how they'll vote. The vote is on whether to accept
one hundred and thirty million dollar loan from Bright Dairy,
which itself phones thirty nine percent of Sinlay, in order
to repay some bank loans before they become due next week.
So Bright Dairy can't vote as they have a conflict

(00:21):
of interest, so fifty one percent of the remaining shareholders
need to approve the loan for it to go through.
A two Milk, which has been feuding with Sinley since
last year, is Sindlay's second biggest shareholder and hasn't said
how it will cast its votes. George Adams is the
chair of sin Lane. He's with me now Hi George
Hi with Jessica. So if this loan doesn't get shareholder approval,

(00:42):
what happens.

Speaker 2 (00:45):
Pretty much are running out of runway. Francesco on on
on Sinlay, So who brings into really the future viability
of the business and that we have to have a
very hard conversation with our bank and obviously our other
shareholder Bright. They might have some thoughts, but Ultimately then

(01:05):
it brings into question things like voltary administration or receivership.

Speaker 1 (01:09):
Are you sure that you can get the money from
Bright Dairy?

Speaker 2 (01:13):
A lot of assure you get the money from Bright
Dairy for sure for one hundred and thirty million dollars.

Speaker 1 (01:18):
Absolutely, shouldn't this be a glorified rubber stamp from the shareholders.
If they don't want their invecement to evaporate, then they
have to approve it, right.

Speaker 2 (01:29):
You describe it particularly particularly sensibly, So I think it
should be. But clearly I can't know as a director.
I'm setting here at the best really a shareholder. So
they need to tell me what they want to do
going forward. And obviously the vote on Thursday gives them
the opportunity to do that, and I very much would
hope that they would vote for it.

Speaker 1 (01:48):
Have you asked A two what they're going to do?

Speaker 2 (01:52):
Oh, I mean, we're in constant dialogue with A two
and they're very much aware of the fact that the
vote is on Thursday. And look, there's really not anything
particularly machiavelliant about it. They just simply have not told
us the way they are going to vote. They may
vote for, they may vote against. They may understain. I
just don't know, So hopefully we'll find that out before Thursday.

Speaker 1 (02:15):
Why haven't they told you, Well, you have to.

Speaker 2 (02:19):
Ask them that, but you know they do have to frankly,
but it is a piece of material information and we
are required to give that level of material information to
the market if we have it. That's the reason for
the announcement.

Speaker 1 (02:32):
And to think, you say you'll need a good turnout
of A two doesn't vote the way you want. Do
you think you will get a good turnout?

Speaker 2 (02:41):
But I mean, you can never anticipate, to be honest,
to contest, So what you try to do is try
to give shareholders as much opportunity to have their say
as possible, which is one of theans you and I
are talking. But clearly, the balance of our shareholders, who
own around forty one percent of the business, if they

(03:03):
don't get out and vote, and A two, for example,
voted against, then really they've only got themselves to to
to to blame. So what we want to do is
we want to make sure that there's no regrets on
Friday morning that they've put out and they've had their say.

Speaker 1 (03:16):
Is that the most important thing that you want the
shareholders to know, George, anything.

Speaker 2 (03:20):
Else pretty much, that's it is. It's it's doay or
die on Thursday. We really appreciate if you tell us
what you what, what what way you want to vote
on Thursday?

Speaker 1 (03:30):
If you get your way? How long will this money last?
I mean? Is is this going to uh change the future?
Or are you going to be requiring more input at
some point?

Speaker 2 (03:42):
Oh no, we've been, We've we've been, We've been searching
your Francisca. Actually, this is this, This just buiys us
time to put the rest of our deleveraging proposals into place. Ideally, clearly,
this gets us through the tape of the life down
for the banks and then post that we will be

(04:03):
coming back to the market with how few on an equers.
We're just working through that and whenever we have the
full details on that, we'll we'll we'll come back to
the market. But for sure, this this is this is
the first step. This isn't but this is not the
full the full solution.

Speaker 1 (04:19):
George Beast of Black on Tuesday, hope you will cheers.
That was George Adams. He was the chair of sin
Live for more from hither Dupleassy Alan Drive. Listen live
to news talks it'd be from four pm weekdays, or
follow the podcast on iHeartRadio