Synlait Loses Third CEO in Five Years as Richard Wyeth Resigns
Troubled milk processor Synlait has lost its third chief executive in five years.
An announcement to the NZ Stock Exchange this morning says the company needs more time to finalise discussions with its banking syndicate, regarding an extension to a $130 million payment to its banking syndicate due today.
The company is also seeking financial support from major shareholder, Bright Dairy of China.
The company will unveil its half-year results on Tuesday, April 2 and earlier signalled a net loss in the range of $17 million to $21 million. Synlait recorded a $4.8 million net profit after tax for the same period last year. The trading halt is expected to remain until the half-year result announcement on Tuesday.
Synlait is also expected to give an update on the sale of its Dairyworks business, which it has been trying to offload since June last year.
Synlait is 39% owned by China’s Bright Dairy. A 19% stake is owned by a2 Milk Company, which is involved in a dispute with Synlait after trying to cancel an exclusive deal on manufacture and supply of A2 infant formula. The two parties failed to resolve the dispute during a binding arbitration process and have proceeded to arbitration.
Synlait shares have been hovering around 75c over the past two months. The shares were trading at around $3.50 at the beginning of last year.
