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

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

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  Speaker 1: You're listening to a podcast from News Talks'd be follow
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  Speaker 2: Dairy company Sinlay's shareholders have approved the one hundred and
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  Speaker 2: thirty million dollar loan to keep the business afloat. This
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  Speaker 2: means they avoid liquidation. The load has been provided by
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  Speaker 2: Chinese firm Bright Dairy, which owns thirty nine percent of Sinlay.
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  Speaker 2: Sinley's second biggest shareholder, A two Milk, broke it silence
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  Speaker 2: this morning and announced at the very last minute that
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  Speaker 2: it would vote in favor of the loan. George Adams
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  Speaker 2: George Adams is Sinlay's chair. Hey, George, hell about it?
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  Speaker 2: You relieved?
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  Speaker 3: Oh? I am absolutely How close was the vote? It
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  Speaker 3: wasn't toasted all. Actually, we had the ninety nine point
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  Speaker 3: six percent of our shaholders voting in favor. So why
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  Speaker 3: would say that's a landslide.
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  Speaker 2: Yeah, that is a lot more convincing than it was
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  Speaker 2: suggested that it was going to be right because there
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  Speaker 2: were a lot of minor shareholders who were complaining about
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  Speaker 2: this in the days leading up to it.
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  Speaker 3: Funny enough, I say that might have been the kiss.
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  Speaker 3: But yet when it comes down to it we had
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  Speaker 3: I would call overwhelming support from our actually from our
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  Speaker 3: broad shareholder base, which was fantastic.
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  Speaker 2: Why did A Too leave it to the eleventh hour
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  Speaker 2: to announce their decision to vote in favor?
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  Speaker 3: Oh look, I really don't know. I really don't know.
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  Speaker 3: They have obviously got their own board, their own shareholders
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  Speaker 3: to consider, So I think that's really a matter for them.
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  Speaker 2: Hell, do you think it has nothing to do with
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  Speaker 2: the fact that it's been in discussions with Sinlay to
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  Speaker 2: the last minute.
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  Speaker 3: I don't think so. But again, as I said, that
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  Speaker 3: will be a question for them.
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  Speaker 2: They have some concerns around the equity raise, don't they.
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  Speaker 3: They haven't read those directly, but if they do, we'll
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  Speaker 3: certainly try and make sure that we deliberate with those
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  Speaker 3: and arrive at are mutually satisfactory outcome.
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  Speaker 2: Because A two has said publicly the discussions relate to
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  Speaker 2: Sinley's broader recapitalization plan, which includes the sharehold alone, as
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  Speaker 2: well as Sinlay's proposed equity raising, So they sound like
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  Speaker 2: they're worried about it totally. What are they worried about?
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  Speaker 2: No idea, No, do not think that the answer is
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  Speaker 2: that they're worried about the dilution of their shareholding.
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  Speaker 3: I would say that could be one of those things.
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  Speaker 3: But ultimately, we've got to we've got to deliver a
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  Speaker 3: significant equity areas to rescue this business, and so we
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  Speaker 3: will be making sure that whatever we do is for
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  Speaker 3: to all shareholders.
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  Speaker 2: Yeah, okay, is it possible that they can retain their
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  Speaker 2: stake in that equity share in that capital.
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  Speaker 3: Raise of courses of courses.
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  Speaker 2: It's not going to simply favor Bright Dairy.
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  Speaker 3: Look, ultimately, we haven't decided anything at this stage as
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  Speaker 3: far as the equerias is concerned, but I would be
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  Speaker 3: extraordinarily on ways to try and do an equerias of
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  Speaker 3: this skill without involving our largest shareholders.
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  Speaker 2: Yeah, what about the minor shareholders, Because this is the
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  Speaker 2: thing that was being raised in the last few days
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  Speaker 2: is that share some shareholders reckon they would have actually
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  Speaker 2: come out of a liquidation better than they would out
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  Speaker 2: of this steal, which includes a capital raise, because of
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  Speaker 2: how much it's going to water down their equity'.
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  Speaker 3: That's I haven't heard that view basically, But look, I
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  Speaker 3: imagine that when we do equales in the next month
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  Speaker 3: or so, we have to go through an independent report
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  Speaker 3: an independent valuation to make sure the job that we're
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  Speaker 3: doing for our shareholders makes sense and delivers them value.
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  Speaker 3: So we will ensure that we are doing that.
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  Speaker 2: Are in a tough position, aren't they, George, Because if
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  Speaker 2: they want to be able to hold onto their stake,
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  Speaker 2: the same stake, they have to check a whole lot
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  Speaker 2: of money in and I've already lost a lot, haven't
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  Speaker 2: they on this business?
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  Speaker 3: Yeah? Look, it depends. I guess when you came in, Heather,
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  Speaker 3: if you bought your shares about ten minutes ago, you
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  Speaker 3: just admit fifty percent. So I mean, but ultimately, I'm
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  Speaker 3: very mindful that we've got a group of minority shareholders
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  Speaker 3: who represent about forty percent of or register that we
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  Speaker 3: have to say the businesses has not performed for so
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  Speaker 3: I'm a quite to you aware of them.
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  Speaker 2: So how are we going to get this business performing?
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  Speaker 3: Oh? That's the thing that I talked about today in
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  Speaker 3: terms of really A getting it deliverged, B getting it
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  Speaker 3: performing again, and see making sure that all of the
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  Speaker 3: assets that we have, including our North Island assets, all
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  Speaker 3: perform for the shareholders. So we've got a very clear
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  Speaker 3: plan to do that.
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  Speaker 2: How confidence are you can do it?
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  Speaker 3: One hundred percent.
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  Speaker 2: Well, I like that, Thank you very much. George appreciated
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  Speaker 2: as George Adams the sin Lay Chair.
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