Wednesday, 28 August 2024 12:21

Synlait shrugs off Penno's complaint

Written by  Sudesh Kissun
The Canterbury milk processor says it disagrees with a complaint filed by John Penno. The Canterbury milk processor says it disagrees with a complaint filed by John Penno.

A complaint filed by a founder and minority shareholder threatens to derail Synlait’s special shareholders meeting scheduled for September 18.

The Canterbury milk processor, which needs the meeting to approve issuance of new shares worth $217.8 million to two major shareholders- Bright Dairy and a2 Milk Company (a2MC), says it disagrees with the complaint filed by John Penno.

Penno claims that under the NZX Listing Rules and Takeovers Code, Bright Dairy and a2MC should not be able to vote on resolutions relating to the recapitalisation, leaving only shareholders other than Bright and a2MC being able to vote on the two resolutions.

Synlait disagrees with the complaint and considers that the NZX Listing Rules and Takeovers Code have been complied with. Synlait intends to engage with the regulators to have the complaint dismissed before the special shareholders’ meeting.

The special shareholders’ meeting is a critical step for the future of the company, Synlait told the NZ Stock Exchange.

“If the resolutions are not approved and the recapitalisation is not implemented, Synlait would likely need to cease trading and initiate a formal insolvency process unless it were to become clear that further support would be forthcoming from Synlait’s existing banks. Synlait notes that such support from the banks will be hard to secure in such circumstances.”

Synlait chair George Adams says that since he joined Synlait in May this year, the board has followed a rigorous process.

“The independent directors remain confident that this is the optimal offer structure for the company.”

Penno is a 2.3% shareholder, having previously served as the CEO, the non-independent chair, and as a director of the company until May 2024.

Synlait says that at this stage, the complaint has no effect on the resolutions to be voted on at the special shareholders’ meeting nor the timing of the special shareholders’ meeting, which will proceed as scheduled.

“The support of all shareholders is essential to safeguard the future of the company. Shareholders can vote in person at the meeting or lodge their proxy appointment online at www.investorvote.co.nz.

“Synlait will provide any further updates to the market to the extent required in accordance with its continuous disclosure obligations.”

More like this

Synlait's back

OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.

Wyeth to head Synlait

Former Westland Milk boss Richard Wyeth is taking over as chief executive of Canterbury milk processor Synlait from May 19.

Milk company launches new round of grants

The a2 Milk Company (a2MC) is launching a new round of grants to support projects aimed at enhancing dairy farming sustainability via the a2 Farm Sustainability Fund.

Featured

ANZCO Foods' net profit plunges

Meat processor ANZCO Foods’ net profit has plunged on the back of lower market returns which squeezed margins and impacted business performance.

Editorial: Forest for the trees?

OPINION: Most people will be aware of the Government's plans to boost coal, oil and gas production to meet energy requirements.

Protest planned outside dairy awards venue

As the dairy industry prepares to celebrate its top achievers at an awards night this Saturday, attendees are being warned to be aware of protests planned outside the venue – Baypark Arena, Mount Mauganaui.

National

Machinery & Products

Gongs for best field days site

Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive…

» Latest Print Issues Online

Milking It

Less hot air

OPINION: Farmers won't get any credit for this from the daily media, so Milking It is giving the bouquets where…

Dollars go offshore

OPINION: The Advertising Standards Authority’s 2024 report revealed that not only is social media rotting our brains, it is also…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter