George Adams: Synlait chairperson on the company's shareholders voting in favour of $130 million loan

Synlait Milk will live to see another day after winning shareholder approval for a last-minute loan.

The shareholders have approved the company taking out a $130 million loan from Bright Dairy, after a nail-biting waiting period.

Synlait chairperson George Adams is 'relieved' the vote worked out.

"It wasn't close at all, actually. We had 99.6 percent of our shareholders voting in favour. So it was a landslide." 

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Episode Transcript

Speaker 1 (00:00):
Now dairy company Sinlay's shareholders have approved the one hundred
and thirty million dollar loan to keep the business afloat.
This means they avoid liquidation. The load has been provided
by Chinese firm Bright Dairy, which owns thirty nine percent
of Sinlay. Sinley's second biggest shareholder, A two Milk, broke
it silence this morning and announced at the very last
minute that it would vote in favor of the loan.
George Adams George Adams is Sinlay's chair Hay, George, Hello

(00:23):
about it? You relieved?

Speaker 2 (00:25):
Oh? I am absolutely.

Speaker 1 (00:26):
How close was the vote?

Speaker 2 (00:28):
It wasn't toast at all. Actually, we had the ninety
nine point six percent of our shareholder's voting in favor.
So why would say that's a landslide?

Speaker 1 (00:36):
Yeah, that is a lot more convincing than it was
suggested that it was going to be right because there
were a lot of minor shareholders who were complaining about
this in the days leading up to it.

Speaker 2 (00:45):
Funny enough, I say that might have been the kiss.
But yet when it come down to it, we had
I would call that overwhelming support from our actually from
our broad shareholder base, which was fantastic.

Speaker 1 (00:55):
Why did A two leave it to the eleventh hour
to announce their decision to vote in favor.

Speaker 2 (00:59):
Oh, look, who really don't know? I really don't know.
They have obviously got their own board, their own shareholders
to consider, So I think that's really a matter for them.

Speaker 1 (01:08):
Heather, Do you think it has nothing to do with
the fact that it's been in discussions with Sinlay to
the last minute.

Speaker 2 (01:14):
I don't think so. But again, as I said, that
will be a question for them.

Speaker 1 (01:20):
They have some concerns around the equity raise, don't they.

Speaker 2 (01:24):
They haven't read those directly, but if they do, we'll
certainly try and make sure that we deliberate with those
and arrive at are mutually satisfactory out come, because I.

Speaker 1 (01:35):
Too has said publicly the discussions relate to Sinley's broader
recapitalization plan, which includes the sharehold alone, as well as
Sinlay's proposed equity raising. So they sound like they're worried
about it. Possibly, what are they worried about?

Speaker 2 (01:47):
No idea, No, do.

Speaker 1 (01:49):
Not think that the answer is that they're worried about
the dilution of their shareholding.

Speaker 2 (01:54):
I would say that could be one of those things,
But ultimately we've got to we've got to deliver it
significant equity areas to rescue this business, and so we
will be making sure that whatever we do is forer
to all shareholders.

Speaker 1 (02:06):
Yeah, okay, is it possible that they can retain their
stake in that equity share in that capital.

Speaker 2 (02:13):
Raise of courses of courses.

Speaker 1 (02:16):
It's not going to simply favor Bright Dairy.

Speaker 2 (02:19):
Look, ultimately, we haven't decided anything at this stage as
far as the equeryis is concerned, but I would be
extraordinarily on ways to try and do an equerias of
this scale without involving our largest shareholders.

Speaker 1 (02:34):
Yeah, what about the minor shareholders, Because this is the
thing that was being raised in the last few days,
is that share some shareholders reckon they would have actually
come out of a liquidation better than they would out
of this steel which includes a capital raise, because of
how much it's going to water down their equity.

Speaker 3 (02:49):
Look, that's I haven't heard that view basically, But look,
I imagine that when we do with equity reas in the
next month or so, we have to go through an
independent for an independent valuation to make sure the job
that we're doing for our shareholders makes sense and delivers
the value, so we will ensure that we are doing that.

Speaker 1 (03:09):
They're in a tough position, aren't they, George, Because if
they want to be able to hold onto their stake,
the same stake, they have to check a whole lot
of money in and I've already lost a lot, haven't
they on this business?

Speaker 3 (03:21):
Yeah?

Speaker 2 (03:21):
Look, it depends. I guess when you came in, Heather,
if you bought your shares about ten minutes ago, you
just have made fifty percent. So I mean, but ultimately,
I'm very mindful that we've got a group of minority
shareholders who represent about forty percent of or register that
we have to say the businesses has not performed for
so I'm acute to you aware of them.

Speaker 1 (03:40):
So how are we going to get this business performing?

Speaker 2 (03:43):
Oh? That's the thing that I talked about today in
terms of really A getting it deliverged, B getting it
performing again, and see making sure that all of the
assets that we have, including our North Island assets, all
performed for the shareholders. Well, we've got a very clear
plan to do that.

Speaker 1 (04:01):
How confident are you can do it one hundred percent? Well?
I like that, Thank you very much, George, appreciate it
as George Adams the sin Lay Chair. For more from
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