Takeover bid?
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
Former Tatua chief executive Paul McGilvary has been appointed acting chair of troubled milk processor Synlait. McGilvary’s appointment follows the sudden resignation of chair Simon Robertson last week.
In a statement to NZX, Synlait says McGilvary will act in the position until the position is permanently filled and that he was elected with the full support of the board.
McGilvary thanked Robertson for his contribution to Synlait.
“We wish Simon well with his future endeavours.”
Synlait’s constitution requires the listed processor to have three independent directors.
Pending appointment of a new independent director, the constitution contemplates a situation where there may not be three independent directors in office. In those circumstances, the constitution requires that one Bright Dairy director abstains from voting on all resolutions put to a vote at a meeting of the board, until a third independent director is appointed to fill the vacancy.
The board confirms that one Bright director will abstain from voting on all resolutions with immediate effect until the vacancy is filled.
Bright Dairy of China owns 39% of Synlait. The other major shareholder is a2Milk (a2), which owns a 19.9% stake.
In recent years, the relationship between a2 and Synlait has soured. Last month a2 issued a notice to cancel exclusivity arrangements under the Nutritional Powders Manufacturing and Supply Agreement (NPMSA) for the a2 Platinum and other nutritional products. Under this deal, Synlait manufactured infant formula for a2.
Synlait disputes that a2 has the right to cancel the exclusivity arrangements.
Representatives of the companies engaged in a period of good faith negotiations, but the dispute remains unresolved. The matter will now enter a confidential and binding arbitration process.
Synlait continues to hold the Chinese regulatory State Administration for Market Regulation (SAMR) licence which is attached to Synlait’s Dunsandel manufacturing facilities.
The licence is for a2’s Chinese labelled infant formula (stages one, two and three).
The company expects to manufacture those products for a2, for products destined for the China market for the period of that licence – currently expiring September 2027.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
There have been leadership changes at the Hamilton-based Dairy Goat Co-operative, which has been struggling financially in recent years.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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Another 16 commercial beef farmers have been selected to take part in the Informing New Zealand Beef (INZB) programme designed to help drive the uptake of genetics in the industry.
Trade Minister Todd McClay says Kiwi exporters will be $100 million better off today as the NZ-EU Free Trade Agreement (FTA) comes into force.
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
OPINION: It seems every bugger in this country can get an award these days.