Synlait milk shareholders have passed three resolutions securing the financial future of the dairy processor and making Bright Dairy of Shanghai a 65% majority owner.
The special meeting was conducted online and at the company’s main processing plant and head office in Dunsandel, Canterbury.
After addresses by chair George Adams and Bright director Julia Zhu, shareholders voted on two ordinary resolutions and one special resolution.
When the proxies were declared after the voting procedure, it was clear that 50%-plus had already been achieved for the ordinary resolutions and 75%-plus for the special resolution on constitutional changes.
When all votes were cast and declared, Resolution 1 attracted 94% approval, Resolution 2 96% and Special Resolution 1 97%.
Under the first resolution Bright Dairy will pay 60c a share for 308 million additional shares, raising $185 million of new capital to repay bond holders and recapitalise Synlait.
The second resolution approved issuing 76 million new shares to major customer and substantial shareholder a2 Milk company at 43c so that a2 maintains its 20% ownership stake.
Bright could not vote on Resolution 1 and a2 Milk could not vote on Resolution 2.
The special resolution for constitutional changes was necessary because Bright Dairy has now become a majority shareholder with 65% equity.
The proxies favoured 95% of votes cast and 77% of issued shares, prior to the meeting votes being declared.
Bright has been the largest shareholder for nearly 15 years and is also a majority owner of Silver Fern Farms meat processor and exporter.
“Bright has and is continuing to play a lifeline role for Synlait,” Adams said.
Zhu reiterated Bright’s support for Synlait and what she called the best dairy farmers and the best dairy processor.
The Bright Group has annual revenue of US$19 billion ($30bn) and international operations provide 30% of that revenue.
