1 00:00:00,160 --> 00:00:02,160 Speaker 1: Simlay was thrown a bit of a lifeline today, but 2 00:00:02,279 --> 00:00:03,880 Speaker 1: it is going to have to massively lift its game 3 00:00:03,920 --> 00:00:06,040 Speaker 1: if it wants to avoid another bailout in the near future. 4 00:00:06,240 --> 00:00:09,000 Speaker 1: The shareholders voted in favor of a two hundred and 5 00:00:09,039 --> 00:00:12,240 Speaker 1: eighteen million dollar equity raise. Bright Dairy obviously contributed the 6 00:00:12,280 --> 00:00:14,920 Speaker 1: Lion's share It's now got sixty five percent of Sinley 7 00:00:15,080 --> 00:00:17,640 Speaker 1: and a two put in about thirty three million bucks 8 00:00:17,680 --> 00:00:20,840 Speaker 1: and keeps its almost twenty percent stake. Oliver Amander from 9 00:00:20,920 --> 00:00:23,400 Speaker 1: the Shareholders Association was at the meeting this morning. Is 10 00:00:23,400 --> 00:00:23,840 Speaker 1: with us now? 11 00:00:23,880 --> 00:00:26,640 Speaker 2: Hey, Oliver, good evening hatter tough on. 12 00:00:26,600 --> 00:00:27,760 Speaker 1: The minority shareholders? 13 00:00:27,760 --> 00:00:31,360 Speaker 2: Say, very tough on the minority shareholders. I mean, look 14 00:00:31,400 --> 00:00:33,840 Speaker 2: for minorities, this really is a bit of a dead rat. 15 00:00:34,120 --> 00:00:36,479 Speaker 2: But they've swallowed that dead rat today. They've taken the 16 00:00:36,479 --> 00:00:39,000 Speaker 2: medicine and Sindley lives to fight another day. 17 00:00:39,440 --> 00:00:41,360 Speaker 1: What was the vibe at the meeting? Did you get 18 00:00:41,400 --> 00:00:44,440 Speaker 1: the feeling that people were reluctantly on board with us 19 00:00:44,520 --> 00:00:45,839 Speaker 1: or you know, pretty enthusiastic. 20 00:00:47,400 --> 00:00:49,640 Speaker 2: I think that summarizes it well. I think the word 21 00:00:49,680 --> 00:00:53,800 Speaker 2: reluctantly on board makes absolute sense. I mean, certainly we 22 00:00:53,960 --> 00:00:56,160 Speaker 2: heard a range of us previously in the lead up 23 00:00:56,200 --> 00:00:58,560 Speaker 2: to the meeting, in terms of some shareholders who wanted 24 00:00:58,560 --> 00:01:01,480 Speaker 2: to contribute to maintain their pro Rauter holding to avoid 25 00:01:01,520 --> 00:01:05,840 Speaker 2: that dilution that you mentioned in your intro. Others, we're 26 00:01:05,920 --> 00:01:07,920 Speaker 2: quite happy that that Bright was coming to the rescue, 27 00:01:07,959 --> 00:01:12,720 Speaker 2: and I think most shareholders, myself included, would recognize and 28 00:01:12,760 --> 00:01:15,679 Speaker 2: acknowledge the support, the immense support that Bright has provided 29 00:01:15,720 --> 00:01:16,280 Speaker 2: to the company. 30 00:01:16,840 --> 00:01:18,800 Speaker 1: Are you convinced that the plan is going to work. 31 00:01:20,760 --> 00:01:23,319 Speaker 2: Well, I guess there's things you do when you're desperate, 32 00:01:23,800 --> 00:01:27,039 Speaker 2: and that Sinlay was certainly in a very distressed state, 33 00:01:27,400 --> 00:01:30,360 Speaker 2: and that the most urgent priority was to make sure 34 00:01:30,360 --> 00:01:33,399 Speaker 2: that the company could actually restructure its balance sheet, that 35 00:01:33,440 --> 00:01:36,040 Speaker 2: it was in a position to repay its debt, to 36 00:01:36,080 --> 00:01:38,160 Speaker 2: meet the demands of its banking syndicates and so on. 37 00:01:38,400 --> 00:01:41,080 Speaker 2: So look, that's got to be the first priority. And 38 00:01:41,160 --> 00:01:43,360 Speaker 2: if you can survive today, you can always live to 39 00:01:43,360 --> 00:01:46,120 Speaker 2: fight tomorrow. And that now becomes the next set of priority. 40 00:01:46,200 --> 00:01:52,880 Speaker 2: So it's gone from extremely distressed to now they're just stressed. 41 00:01:53,880 --> 00:01:56,160 Speaker 2: But they'll have to take the company would have to 42 00:01:56,200 --> 00:01:59,960 Speaker 2: focus really hard its operating performance over the coming twelve months, 43 00:02:00,280 --> 00:02:02,440 Speaker 2: they'd have to focus really hard on the activities that 44 00:02:02,640 --> 00:02:06,280 Speaker 2: sought out its operating issues, particularly the North Island. Now 45 00:02:06,320 --> 00:02:08,519 Speaker 2: they've taken steps to do that, but there's a long 46 00:02:08,560 --> 00:02:09,080 Speaker 2: way to go. 47 00:02:09,240 --> 00:02:11,240 Speaker 1: So all the rest of them. Yeah, are they going 48 00:02:11,280 --> 00:02:13,160 Speaker 1: to be able to convince the farmers to stick it 49 00:02:13,200 --> 00:02:15,800 Speaker 1: out with them? 50 00:02:16,080 --> 00:02:19,359 Speaker 2: And that was discussed today and actually the chair did 51 00:02:19,360 --> 00:02:22,000 Speaker 2: go into some detail around some of those initiatives that 52 00:02:22,000 --> 00:02:25,119 Speaker 2: they're undertaking. Yes, the North Island Strategic review is really 53 00:02:25,120 --> 00:02:27,880 Speaker 2: important to them. The farmers in the South Island supply 54 00:02:27,919 --> 00:02:30,960 Speaker 2: the dun Sandal facility really important to them. There will 55 00:02:31,000 --> 00:02:34,639 Speaker 2: be a lot of focus the company has placed will 56 00:02:34,680 --> 00:02:38,000 Speaker 2: place in those key supplier relationships. So I've got no 57 00:02:38,040 --> 00:02:41,680 Speaker 2: doubt that the work will already have begun on that 58 00:02:42,040 --> 00:02:45,160 Speaker 2: and it needs to continue. So the company still is carrying, 59 00:02:45,200 --> 00:02:48,960 Speaker 2: as you say, some significant operating risks going forward, and 60 00:02:49,200 --> 00:02:51,360 Speaker 2: the proof and the pudding will be over what happens 61 00:02:51,400 --> 00:02:54,360 Speaker 2: over the next twelve months. There's a marker on the 62 00:02:54,400 --> 00:02:56,480 Speaker 2: way they've got. In less than a month's time, they 63 00:02:56,520 --> 00:02:58,919 Speaker 2: will be a couple of weeks time they'll be announcing 64 00:02:58,960 --> 00:03:02,120 Speaker 2: their financial results of the previous financial year, and no 65 00:03:02,240 --> 00:03:03,560 Speaker 2: doubt at that point will be a bit a bit 66 00:03:03,600 --> 00:03:04,399 Speaker 2: of an update as well. 67 00:03:04,520 --> 00:03:06,760 Speaker 1: Wasn't you who asked at the meeting today whether they 68 00:03:06,800 --> 00:03:09,160 Speaker 1: might need another bail out, another equality raise in a year. 69 00:03:10,080 --> 00:03:13,440 Speaker 2: It was the answer, I think yes, but and a 70 00:03:13,440 --> 00:03:16,240 Speaker 2: look that the company did respond really clearly on that, 71 00:03:16,800 --> 00:03:21,160 Speaker 2: and he and the George Adams's comment, quite appropriately was 72 00:03:21,200 --> 00:03:23,160 Speaker 2: that they have to earn their strips before they come 73 00:03:23,200 --> 00:03:25,400 Speaker 2: back to the market, Otherwise they've got to have some 74 00:03:25,480 --> 00:03:28,360 Speaker 2: proof on the board that they have actually delivered something, 75 00:03:28,880 --> 00:03:32,320 Speaker 2: and that that is a reasonable answer, and that the 76 00:03:32,400 --> 00:03:36,520 Speaker 2: key that what was behind my question was signaling that firstly, 77 00:03:37,360 --> 00:03:39,720 Speaker 2: that that operating performance over the next twelve months is 78 00:03:39,760 --> 00:03:44,880 Speaker 2: absolutely critical for them to be able to still cope 79 00:03:44,880 --> 00:03:47,200 Speaker 2: with what is a significant level of debt that they have. 80 00:03:47,360 --> 00:03:50,640 Speaker 2: They've just refinanced their banking syndicate with a four hundred 81 00:03:50,640 --> 00:03:53,119 Speaker 2: and fifty million dollar facility. That's still a lot of money, 82 00:03:53,400 --> 00:03:57,720 Speaker 2: and so they are still reliant on on on a 83 00:03:57,760 --> 00:04:01,000 Speaker 2: good performance over the coming twelve months, and George Adams 84 00:04:01,040 --> 00:04:03,600 Speaker 2: did acknowledge that as well. So it was a very 85 00:04:03,600 --> 00:04:06,160 Speaker 2: clear answer. But it's not imminent. They're not going to 86 00:04:06,160 --> 00:04:08,360 Speaker 2: come to the market tomorrow and want more capital, but 87 00:04:08,400 --> 00:04:10,160 Speaker 2: they do need They slap a lot of work to 88 00:04:10,160 --> 00:04:12,240 Speaker 2: do to make sure the company can operate well. There 89 00:04:12,240 --> 00:04:14,280 Speaker 2: are still inherent risks that they need to deal with. 90 00:04:14,520 --> 00:04:15,880 Speaker 1: Olive, it always good to talk to you. I really 91 00:04:15,880 --> 00:04:18,880 Speaker 1: appreciate your time. That's Olive Amanda, New Zealand Shareholders Association. 92 00:04:19,640 --> 00:04:22,839 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 93 00:04:22,920 --> 00:04:25,960 Speaker 2: news talks. It'd be from four pm weekdays, or follow 94 00:04:26,000 --> 00:04:27,719 Speaker 2: the podcast on iHeartRadio.